You're right Peach, the money part is easier than the "thou shalt not freak" rule, that one's the most difficult. The paradox is, when the money's down it's almost easier to say "oh well, the market's lousy right now, but these are good stocks and it'll come back up again given time and patience" than when the market's going sky high and your stocks are right up there too and you're on the edge of your seat; and then it's "what to do, what to do- should i sell these winners now, or wait to see if they'll go up even more or split and get twice as many shares, holding for my old age?". I've learned not to hold onto 'em anymore at times like that - because a duck in the hand quacks louder than two in the bush! I'd rather regret not staying in something after what looks like a top, than regret having stayed in it if it suddenly slumps. I find keeping some freeriding shares in the hold, is doubleplusgood though. I call these shares "portfolio firewalls". It's nerve-wracking times like dips and rallies especially when those Cores provide important portfolio and psychological stability - especially as it's so uncertain with most tech/internet stocks yet whether they're suitable for such long term holds, or not. As they're still in process of weeding themselves out and will be for some time - and it's the newness and process of the "here today gone tomorrow" that gets to ya. There's the looming fact of obsolescence combined with unknown reasons why some companies can achieve cooperation with others while some can't... so the big $ winners and losers are most extreme in the technet sector of all, right now. These factors give it that uncertain vibe that gets on the nerves of anyone that plays with 'em.
Yep they'd try the patience of a saint sometimes, yet here we are - On 'Em because we can't resist the profit potential of the sector. After all, the reward of going through it is to Make Money (while having fun on Techride!)So me, i try to play 'em somewhat conservative anyway, dampening down the "freaking" effect somewhat....going for:
1) lowered expectations -not trying to nail every penny of the high and low, not afraid to take my profits when they're on the table in front of me (have bought 'em back lower AND higher, one can always buy 'em back again @ either price). But there are always exceptions to this formula, Kenny Rogers sang it "The Gambler" best @ LIVE@ TECHSTOCK '99 "You got to know when to hold 'em, know when fold 'em, know when to walk away, know when to run....."
2) sticking with what's happening now (or at most fairly predictable as "very next phrase") gets better immediate profits. By not trying to predict how the market interest or technological trend will go by TOO much, gives me positive results quicker. Even though the more popular stocks of the moment will never yield as much as picking out that obscure winner for a dollar a share, holding onto it and riding it up to a hundred... stocks are investments not lottery tickets anyway. It works better for me to keep myself happy and try to avoid stocks that might fade or for some reason aren't catching on fire, so much. Even though those are the ones that can make Those Big Pops. I look at Content, Alliances, Revenue Increases, maybe even Earnings.
3) And finally "Growing The Cores" with part of the profits from the internets, gives a feeling of security plus it's a good way to nail down some internet stock profits that could well shrink again like a pile of poker chips, if the next hand doesn't go as well. These Core stocks like Blue mentioned don't grow as fast as an Internet Momo, (though i got a feeling MSFT will do something spectacular sometime) but they'll do real nice for college educations, retirement, a legacy etc. in the long run. Because they split and go up too (just not so fast as nets are doing), they'll 909 in the portfolio much faster when more shares of them are bought along the way with money from Dotcom. I've increased Pfizer to nice 'n big this year, after it's 3-for-1 split earlier, and it's still cheap. It's in some "issues" right now, so it might stay low for awhile. That's OK, because as long as it does it'll be the right time for me to buy it: thinking of that one as having my daughters college education paid for - Mission Accomplished, Whshew! I bought my first shares of PFE a few years ago, and it's done me right nice. I don't even look at it every day when i hover on my more "iffy" nets, just sitting on it thinking it's a pretty safe one and in the long run it's got nowhere to go but UP.
Hope i'm right, of course nothing's for sure.
909s,
Joanie. |
