What Small-cap Stock Investor should know?

Most important things an Small-cap Stock Investor should know? Tom was a highly successful Small-cap Stock investor and preached cutting all his losses short. And for us, this is rule #1. You mush always protect your investment account. Particularly if you invest or margin (use borrowed money), cutting losses is absolutely essential. Whether you are new or experienced investor, the hardest lesson to learn is that you are simply not going to be right all the time. And if you don’t cut every loss quickly, sooner or later you will suffer some very large losses. I have known seven highly intelligent, educated men in their 40s who were wiped out because they invested on margin and had no sell discipline. Brain, education, ego, stubbornness and pride are deadly substitutes for having and following sound selling rules. The problem is, you always hope to make money when you buy a stock. And when you have to sell and take a loss, you find it gut-wrenching and hard to admit you were wrong. You’d ... more