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Pastimes : John Dessauer's Investors World -- Ignore unavailable to you. Want to Upgrade?

To: R Chen who wrote (1945)	12/20/1998 4:55:00 PM
From: Wren	Read Replies (1) \| Respond to of 2346

Another interesting quote from the Bill Gross book is in the chapter discussing the emotional and psychological aspects of investing. He says to get to know your tendencies and act accordingly. He explains this by comparing you tendency to act to the face of an alarm clock. "Let's say that 6 AM is the perfect time in terms of buying or selling stocks and bonds. In other words, if your investment alarm clock always rang at 6 AM, you'd be pretty close to the top of the market if you were selling and pretty close to the bottom if you were buying." "The problem is that because of emotion and the associated greed and fear that all investors harbor within their little capitalistic brains, our alarms clocks don't usually go off at 6 AM. If your clock goes off at 10 AM, you have sold way too late to be successful - the smart money has already been up and at 'em and sold as the markets were beginning to go down." He continued, "I have been personally working on this for the last 20 years with some degree of success, although I suspect I'll never get it completely right. My investment alarm clock usually goes off at about 4:30 AM - not all that early really, but early enough to do some damage if the bull market or bear market is especially volatile. By knowing when it goes off, I've learned to push the snooze button at least a few times before I buy or sell." End of quote. I guess that you also have to learn when the alarm clock of your investment advisor goes off.