Tuesday, November 28, 2006

Sit Back

Been in a project hailed as the next new thing? 6 Months down track you realize that something is missing, motion is beginning to appear forced and transition is not flowing smoothly. You begin a project with zeal and halfway through, it hits you that you may have taken a wrong turn a few weeks ago and slack is now diminishing. Budget tight and deadline approaching, well you got people looking to get the project done when they want it. Relationships could be thought of as projects and most of the times we may have things under control only to realize that down the tracks you missed a turning. With a project, you risk over blowing the budget and having delays, feelings on the other take o a different route.

You invest time in a relationship, heavily invest and somewhere along the line as you review you investment, leakage and losses are beginning to appear. All investors want a return, none of us are out to lose money. Think of it from an investors point of view, visualize a scene in a Wall Street; recession has been announced. How many investors will dump their stocks? I would be the first to call my stock broker, " SELL", cash in while you can the market is volatile. Things are different when matters if the heart are at stake, bailing out when stock prices crush may not always be the best option, nonetheless it's an option.

The thing with options is that the he who stands to lose the most need to assess the sistuation critically before opting out or trying to weather the market shake up. Risk can't be avoided, the only lesson from my numerous management classes was that risk can't be avoided but can be managed. Selling is probably the safest option for a shareholder but what if the market picks up tomorrow and you've shed you shares? It's understandable to want to cash in while they are worth something, after all none of us like losing. Sometimes it's good to just SIT BACK and watch, panic is inevitable but after the panics sit back and look at the bigger picture; what if the market rises tomorrow?

Your stock broker recommends holding on to the stock for a bit longer and if the prices continue to drop, he'll sell and reimburse you on the lose. Relationships are tricky and the share market rules and principles may not tally, they are similar (my understanding). Don't just dump you shares at the first sign of market crush, just maybe tomorrow your share will rise, just maybe.


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