Originally Posted by
KW
If you had bought $10,000 worth of FET shares 10 years ago you would have had 6,993 shares (@$1.43) which would be worth $14,545 today (@$2.08). Some might say thats not a bad return - 45% over 10 years. But over that time period you would have had to watch your investment drop to $0.14 - your $10,000 would have been worth $979 at the bottom of the bear market! How well would you have been sleeping then? You would not have gotten back to even until March 2013 - thats 7.5 years before you start to make a profit on your original investment.
However, if you had utilised the most basic of TA exit signals (in this case the 50 and 200 week moving average) you would have sold your shares in December 2007 (breach of the 200 MA) for $1.60 netting you $11,188. You then would have sat out the market drop until September 09, when using your $11k you would have bought back in at $0.38 (price above the 50 MA). This would have given you 29,444 shares which would be worth $61,243 today. Or a 610% return on your money.
45% or 610%? Your choice. Don't get trapped in a bear market. And if you have sold out, don't forget to buy back in once the share price recovers. You don't need to pick absolute tops or bottoms - you just need to be on the right side of the trend.
FYI - FET is an AREIT, a stable dividend paying stock.