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Was born, has lived a fairly good life, will one day cease
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  • Everyone's Got A Plan

    Until they get hit in the face...I believe the Philosopher Mike Tyson came up with that wisdom nugget and it is days like today when I know what he meant.

    The market has tumbled for a while now and today's excuses are THE FED and OIL or maybe it is GREEK EXIT and ANALYST DOWNGRADES.....Whatever current Boogeyman is my opponent he is sucessfully jabbing the crap out of my face.....

    So here is the time when one must remember all those promises to keep plowing $ into DGI stocks even when they tumble 2.2% like UTX is today or almost 6% like DIS (yes nitpickers not a classic DGI stock but since no one reads these I can mention whatever damn stock I want) is today.....

    This is the inflection point when bull turns to bear and all those brave words and fight plans get put to the test. The question is do you abandon that plan and move to cash to try to time the bottom, do you move to "defensive stocks" and try to rope a dope the bear, or do you do what you said you were going to do before you touched gloves, buy the DGI's low and drip your way to steady income?

    I've been punched in the face but they've only been jabs so far, no knockout blows landed....I'll be sticking to the fight plan, will you?

    Toasty "Protect yourself at all times" 54

    Aug 20 2:55 PM | Link | Comment!
  • Forget Stop Losses I Need Stop Gains.

    Forget stop losses I need stop gains. I can't tell you how many times I've been down on a stock and promised myself if I break even I'm out. problem with that is when you break even the stock is moving up and human nature and greed tell you to stick. AA & TAxi great recent examples of this phenomon in my portfolio.

    Same thing with certain cyclicals and/or spec plays. I'll buy in going, if it hits $____ i'm out with a nice profit before the downturn or honeymoon wears off. But when it hits $______ there I st not pulling the sell trigger only to ride the inevitable cycle back down or bad news from _____ that kills the spec play. DE & RMBS come to mind here.

    Stop losses are great for minimizing the amount of you lose but the whole idea behind investing is to make not lose money. I'd have made a lot more money in my investing lifetime if I could have set unchangeable stop gains and had them execute even against my will.

    Hey Chucky Schwab get on this would you?

    Toasty "help me help myself" 54

    Tags: AA, RMBS, TAXI, DE
    Jun 14 11:13 AM | Link | Comment!
  • The 1st Step In Due Diligence

    Everyone is so quick to say "Do your own Due Diligence" or "Due Diligence is the 1st step toward buying any stock" but so many people miss the first step of doing DD which is doing due diligence on yourself.

    Know thyself..had I paid attention in that one philosophy class I might remembber if it was Socrates or Aristotle or that other Aristotle who married Jackie Kennedy who said that but whichever greek it was he should teach an investment class.

    You'll never be a succesful investor unless you do DD on you.

    What is your risk tolerance?

    What are your financial assests?

    What are your financial liabilities?

    What personality assets do you have?

    What personality liabilites must you fight to keep from hurting your investments?

    What near term events can change these attributes?

    What long term goals do you have for your investments?

    What level of loss can you withstand?

    What amount of gain is enough?

    What is your timeframe?

    What areas of expertise might you be able to use to your advantage?

    What blind spots do you have in your knowledge and how can you mitigate them?

    (I'm sure I'm missing many key elements to proper self-DD)

    The answers seem basic until you really search deep in your psyche to understand if you can live playing penny stocks on margin to try to be a 23 year old millionaire or if you are risk averse and should think about never risking principle at all.

    Knowing the status of your "personal balance sheet" allows you the foundation upon which you can construct a plan that fits you best. Only after compelteing inward DD should you start doing outward DD on companies, mutual funds, bonds or savings account interest rates.

    The funny thing is so many people say stuff to me like "You invest in stocks what should I buy?" or "Where should I put my money?" even though I show no outward signs of financial success or acumen. It is enough that they have seen me checking my Yahoo portfolio and knowing that I don't stress over every paycheck to make them ready to listen and act on what I say. If I said dump thousands in "XYZ" because Blah blah blah some of the very smart people I know would do it.........and there are plenty of people out there and many in here at Seeking Alpha way too ready to exploit that mindset.

    Craziness! They should be asking- Where can I learn about the stock market? What books and websites should I use to educate myself? Is there a place I can make a fake portfolio to see how I would have done if I......etc. etc. These are people who have failed to do personal DD on even the most basic level and if the sheep keep bleating the wolves will not go hungry.

    Toasty "touch gloves and protect your investments at all times. Now come out trading" 54

    Aug 08 8:46 AM | Link | Comment!
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