- Year to date high & low of stock prices
Largely, the month of June is bound to come slowly at the market arena but will most likely pick towards the end of the month. In other words, there will be possible selloffs before later aggressive purchases to balance up portfolios as end of Quarter and end of First Half of the year performance booster. To this end, you need to follow this piece of advice:
- If you bought any stock high and the stock price is descending, what you need to do is to calculate your risk and also know your risk tolerance level, that is, measure of loss you can accommodate. If for example you bought stock X for N10, and the price is trending down. The risk you carry at the immediate period is the year low price of the stock; that is, the lowest price that the stock has sold in the course of the year. So if the stock price even trends down and now getting to the lowest price level in the year, will you be comfortable still staying in the stock? Or you will be budding up to even invest more or you will allow panic to set in. Will you be regretting ever investing in such a stock? Or you will seize the opportunity of the down trend now to invest more. If you will be comfortable to invest more, please wait in such a stock. If you will allow panic to set in, maybe you should just sell and keep your mind at peace.
- If you bought low and the price later moved up, only for you to begin to see a downtrend in price; don’t regret the fact that you didn’t sell, but try to see how low that the price can still come down further to. When this is ascertained that it will not injure your finances, you can wait. You see, stock prices move in a repetitive format, just like the path of life where recurrent of events is just normal; so it is in the stock market.
- What quality of stock are you holding? What should guide your investment decision in the month of June should be stocks of company that had always performed well particularly in second quarter or first half of the year. Sometimes, the performances of companies could be as a result of the products sales patterns. For example, Q2 might favour Sugar maker than others, while the same quarter might not so much be in favour of Brewers. You know why? Ramadan fasting fell within the quarter. There is no way those 30 days will not impact enough on the performances and sales of companies. Q2 Earnings often come in some companies with interim dividend. Access, Guaranty, Zenith are noted for that. Don’t joke with that at all. So if you are in such a stock, and their prices are down, you don’t also need to panic.
Year to Date High & Low of Stock Prices: January 2021 to June 4, 2021
