Club Mulgoa

Thursday, February 23, 2012

RRS and RMP

After confirming that the rumour was not true, it took a full day before the share price plunged. If you had bought at above 18c in the last few days, you would be furious. I prefer to buy when it has fallen AFTER a GOOD rumour!

There is a lesson to learn here. Never leap in purely on rumours. When it comes to money issues (or politics), be wary about hearsay until you know the truth. Share prices that keep rising without any basis should be treated with skepticism. In fact, if it is a relentless rise for no good reason, consider selling and re-buying when it has fallen again.

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