Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : Don't Ask Rambi -- Ignore unavailable to you. Want to Upgrade?

To: Rambi who wrote (22980)	4/22/1999 8:32:00 AM
From: accountclosed	Read Replies (1) \| Respond to of 71178

Penni, I composed this off-line, so I apologize if the formatting is bad. Let me try to ramble up an answer: Always return to first principles. The first thing to do I think when one is perplexed about the market is to return to first principles. Let me propose a few: 1. Each individual has a unique personal and financial situation. 2. A market strategy should always be consistent with that situation. Revisit this principle every day. Is my strategy consistent with my goals, my means, and my risk tolerance? Is it based on realistic expectations? As an example do I have credit card balances that I am paying 20% on because I want to buy puts or internet stocks? 3. The results of others are a mirage. 4. The market never owes us one. No matter what other people do or claim to do. No matter what stock we bought last week or whether it went up or down. 5. The best strategy is always where to from here consistent with principle number 2. Not making up for losses. Not letting bets ride because it is the "house's money". 6. Should one divide up one's assets into different categories? It depends. Some would argue that they have x different portfolios. That the strategy in each is different. Does such division enhance returns for you or give you more opportunities to trick yourself into gambling and changing strategies? To the extent that you do divide into different strategies, probably you should have separate accounts. 7. Does value matter? Good question. Certainly it doesn't matter as in let me look at this stock, make a conclusion, and I believe I will buy calls/puts for the next expiration and am sure to win. Have a long term horizon if you are value investing. Options are by definition a limited time horizon asset. Therefor, if you are using options to pursue your value strategies, make sure there is a long term discipline to your option program. If you lose your stake, you are out of the game. Valuation questions are only resolved in the long run, so you have to be prepared for a long series of expirations in which you lose money. Also this implies that when you win, the size of the win needs to be large to make an overall satisfactory return. I think I'll stop with the lecturing there. When will value or anything else matter? I certainly don't know. I just try to make sure that my investments are consistent with my finances, appropriate to my risk tolerance. I constantly kick the tires to make sure they are right for me. So much of si is out of context. Never forget your own context.

To: Rambi who wrote (22980)	4/22/1999 9:03:00 AM
From: accountclosed	Read Replies (1) \| Respond to of 71178

hey rambi, sorry if i got up on the soapbox. it's just what i do...try to remember to stick to what i'm about. I've got to make strategies that makes sense for me. Not listen to the ravings of Mr. Market. ;-)