Wealth-Coaching

Knowing where your stock *might* go is almost as important as where it does eventually go.  As an investor, you need to think through the possibilities that you stock may face as difficulties arise.

Consider these possibilities:

Competitors
Know where the major competitors are going to see how your stock will fare against them.

Product Recalls
If you hold stock in the company that makes Baush and Lomb’s Renu right now, you are probably pleased at the actual response in the markets to their recall, but it doesn’t always go that way.

Raw Goods Shortages
How might a shortage of oil or high oil prices affect the makers of Lego blocks? 

Long Term Strategy
Do they seem to be headed in the right direction?

Think about other events that might affect your stock’s outcome.  For instance, could anyone have imagined Martha Stewart would go to prison?  No…  Probably not, but you could have imagined a situation where her star might tarnish.

Just try to think through the possibilities of where your stock is going to determine whether or not you want to hold the stock at all.