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Strategies & Market Trends : Want to make $1000 a week trading.....I'm going to try!!! -- Ignore unavailable to you. Want to Upgrade?

To: Mike McFarland who wrote (489)	1/25/1998 2:33:00 PM
From: Double Dipper	Read Replies (1) \| Respond to of 1100

Mike, Good post. I like that kind of common sense approach to trading. That is why I try to distinquish between investing and trading. One is for the long term future of my family. The other is the thrill of victory and angony.... Bottom line, don't bet what you can't lose. This is gambling and Uncle Sam gets his percentage everytime you win without the risk. When you get far enough ahead, say 50 or 100% take some off the table and start over. Then invest the winnings and you'll have a winning strategy. Kevin

To: Mike McFarland who wrote (489)	1/25/1998 6:00:00 PM
From: Marlin C. Harmon	Read Replies (3) \| Respond to of 1100

Mike, I too like your approach, but have an additional comment that might help in common sense investing. Many people suggest these days various mortgage savings ideas which usually include paying off the mortgage early by doubling or adding to the monthly payment and then investing the savings from early mortgage close out. That approach makes sense if there is absolutely no or little self control in which case the stock market is probably not the best place to be with that temperament anyway. I suggest that rather than send the $25K into the mortgage company and let it sit gaining no interest at all during the remaining life of the mortgage, put it at least into a CD at the highest interest possible. Over the 10-15 years of remaining mortgage life it could possibly gain at least 25% or more in value. That extra few thousand dollars will help to gain additional ground on the mortgage and preserve the tax deductibility of the monthly interest. And then at a chosen time when the amount of the accrued value CD is enough to pay off the mortgage, send it in and pay it off. If the $25K is sent directly into the mortgage company the principle is increased and the interest decreased per month, hence reducing the interest deducted from the income tax, plus you really are not going to reduce the total size of the monthly payment anyway until the pay off is complete. However, by calculating the yearly amount saved by subtracting the $25k + accrued interest of the CD and the interest saved from the unpaid mortgage from the total and dividing that saved amount by the number of years saved, you then have the amount to invest as you have suggested. That might be a little confusing but it is worth about 25%-50% of the $25K, Marlin PS. This business of hedging safely with a CD maybe better done with a big chunk of gold, given the current quickly developing political climate.