Cecil

The Industry Indicator: Buy When the Market Sells

Clue Me In,

Don't give up. Before you get yourself all wrapped around the axle over specific and detailed questions like this, why don't you take a step back and get a few fundamental things in order.

For example, what is the goal of your investment plan? And it isn't enough to answer "my goal is to make as much money as possible in the shortest amount of time." People who are saving and investing for retirement have a very different goal than people who are already financially secure and are speculating for the pure sport of it.

Then ask yourself this question: if all I really need is to get from point A (your current net worth of, let's say, $50,000) to point B (a net worth of $1.5 million) and I have 32 years to achieve this, what is the best way to go about it? The best way will always be the way that involves the least amount of risk in order to generate the final result. Taking on any risk above that level is unnecessary and more likely to result in disappointment.

The second thing you should ask yourself is, do you want to re-invent the wheel by trying to become an expert investor, and enter the arena against highly trained, highly skilled, very wealthy professionals? In my view, this is a very low-percentage bet. I would not even think of representing myself in a lawsuit just so I could save on attorneys fees. Likewise, I believe that serious investing is not well-suited for do-it-yourselfers.

Unless you have so much free time, and so much personal interest in becoming successful at investing that you are willing to do whatever it takes to achieve it, do yourself a favor and spend that time and energy instead on finding a professional to do it for you. It will be well worth the cost.