Archive | Stocks

Ben Bernanke, Chairman, U.S. Federal Reserve Bank

Bernanke spends a billion $ here a trillion $ there! What happens next?

Seeing Fed brilliance in action! Part 2 of 3 Ben Bernanke and the U.S. Federal Reserve Bank will self-liquidate well over $1.3 trillion massive mortgage inventory by simply letting the bonds mature. That great pile grows larger at the rate rate of $85 billion more each month!

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Oprah Winfrey

Oprah is right – Aristotle got it wrong!

“Follow your instincts. That’s where true wisdom manifests itself” – Oprah Winfrey”Follow your instincts. That’s where true wisdom manifests itself” – Oprah Winfrey Oprah is right and investors can benefit by being open to her advice. Following it can help grow profits and avoid losses. Instinct is our subconscious mind working for us. We must listen as well as use it to think and act. Over 2,300 years ago Greek philosopher Aristotle laid the foundation of logical and scientific thought.

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Emotions are integral to investing

For investing success, control actions – use emotions!

For investing success, control actions – use emotions! As an investor, emotions are as intimate to you as your heart or brain. To be the best investor you can be, you absolutely must control your actions, your behavior. Do not waste a scintilla of time or an iota of energy attempting to control your emotions. Rather control your response to emotions – your actions. Your very useful emotions help you. A seismic shift in investor thinking has been under way for a very long time. Now going mainstream, emotions are being acknowledged as a core part of the investing behavior of humans. In fact I should more correctly present the topic as the psychology of humans making financial decisions.

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My stock is up again, should I take profits?

Profits are for growing not for protection!

Profits are for growing not for protection! Let profits grow, they are for growing not for protection! You invest to profit. Don’t kill your performance by selling winners and buying losers. Use this as part of your core portfolio growing strategy to get rich. Investors must manage their portfolios to grow their wealth and achieve financial security and independence. Actions taken to protect gains can kill the possibility of dramatic portfolio growth. Don’t move to protect a gain too soon. Let profits run.

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Investor watch lists and toe holds

Investor watch lists and toe holds

Investor watch lists and toe holds can accomplish much. Watch lists or model portfolios enable risk free monitoring but for best performance I use toe holds. Putting skin in the game serves to focus my attention.

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Always seek the minimum positions for affordable costs.

Costs drive investor position sizes

Costs drive investor position sizes. Minimum positions for affordable costs keep costs per share low. Investors know minimum position sizes for affordable costs. This second sizing factor gets the transaction costs right. This effectively puts a financial barrier or threshold in place for owning an individual share position.

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Size matters in stock positions

Size matters in stock positions

Part 3 of 6 part White Top View series, Portfolio Management – Counts and Sizes. Size matters in stock positions. The number of different stock positions as well as the size of each position measured in both the number of shares and amount of money invested per position all matter. This discussion covers position number and size.

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Investing studies and holding counts suggest 16 stocks as the ideal

Investing academics and holding counts

Investing academics and holding counts in multiple studies conclude 16 stocks are the ideal number, with 5% to 7% of a portfolio held in each position. The range is surprisingly narrow. Most suggest between 15 and 20 stocks as the best number. You and your top research assistant, Google, can find endless numbers of studies.

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