Correct investing is multi-year long term. Trading is never about out guessing the market. It is about your risk, about rebalancing, and about cash flow. Trading should be occasional at most. Commissions should be discount. Commissions destroy portfolios. The research … Continue reading
Yearly Archives: 2011
Day by day, the swings recently were dramatic (or melodramatic) as everyone’s fear and greed alternated in power. So far in November, there have been a horrible day (the Greek Crisis), and two great days (the Greek Crisis). Over the … Continue reading
The market swings cannot be predicted. The TV and internet stock reports exist by amplifying the excitement of the day. Ask yourself what would be the ratings of a Market Watch type TV program that announced “nothing relevant happened today. … Continue reading
Gold is this year’s bubble and historically has been a very dangerous investment. It has very wide swings in value and could go down as quickly as it has gone up. Look at the last big swing as an example. … Continue reading
Very few mutual funds beat their index in any year. Over five years, almost none have done so. These mutual funds have expensive managers (and expensive research). Unfortunately for the shareholders, the managers do not add as much value as … Continue reading
Technical trading is a method to extract as much commission from you as possible. Often, brokers will use terms like the “stock is above its 30 day average”, “head and shoulders”, etc. Technical trading claims to be able to predict … Continue reading
The first rule of finance is that there is no free lunch. Risk and return are related. You cannot have more return without taking more risk. Risk-free investments yield little or no return (like money market accounts). Very risky investments … Continue reading