go slow, don't try to be hero. Buy world class stocks as a base, and watch you speculative plays like a hawk, don't be afraid to take a loss ( Don't be in denial, take my play in AVCI yesterday, I accepted I made a mistake so out it goes, now I don't have to worry about it droping), and take a small gain if you can before a stock turns on you, and try to wait for the market to sell down, before you start to build. (I think the market is losing steam here, I bet we have a sell off soon. I'm going to use it to add little to my big stocks.) Once you have a gain of say 20 to 30%, try not to get shaken out on a 10 to 15% drop they happen, more so then years past. You can become very rich taking gains of 10 to 15% and smaller amount of 8% losses. DO not let people tell you that it's bad to take a gain because of taxes, that is out and out wrong! I have a saying, "The more taxes I pay, the more I'm winning buy." One more thing, if you take loss and you feel bad about it, you might not be ready to be a full time player. One needs to fit their investment style to their own psychological make-up. You can't be walking around feeling sick. So you need plan and you need to stick to it, and the plan has to fit to you. One of the bigest mistakes I see investors make is to not have plan, and to be chasing after whatever catches their eye.
Greg |
