I had a hard time when I began to invest in stocks in deciding the best price to sell my shares, exit the position and quantify my tax calculation. Figuring out the entry point is only part of the challenge. Knowing when to get out is where returns are realized. Until an investor is out of a position the gains…
Month: October 2007
Understanding Downside Risks in Investing
I wrote a post named “What is Risk Worth” a few months ago and have thought of a possible better way to explain some reasons to accept downside risk in investing. This idea stemmed from thoughts left over in my head after writing my Four Stages of Succesful Investors series. I’ve had a fairly comfortable relationship with…
Stock Picks from Barron’s
Today’s Barron’s offers some stocks to ponder. While Kopin Tan and Michael Santoli gave reasons for a more bearish overall outlook, these stock picks might be ripe for investing if you listen to Barron’s other writers. I’m not so sure I agree on most of these. A few weeks ago I agreed with most of their…
DJIA ($INDU) Chart – 10-5-07
I charted the past three months of daily price action on the Dow Jones Industrial Average ($INDU) this week. In some ways I was surprised that the Dow made it above 14,000 and closed above it for the week. On the other hand I’ve made a bunch of bullish trades recently so I guess I was expecting…
Gold Mining Stock Picks
The October 1st issue of Barron’s had an article focusing on gold mining companies. I’ve only traded a gold stock once before. It was Ivanhoe (IVN). I think I made a few dollars as it bounced past $4. A friend of mine recommended it as he had already made a killing in precious metal stocks and thought gold…
Four Stages of a Successful Investor – Stage Four: Options Investors
Continued from yesterday’s stage three post. Stage Four – Options Investors Most investors do not make it past stage three. The reasons can vary from a lack of knowledge regarding options, fear of the risks of options (I’ll debunk this fear in a minute) or just a state of being content with the gains they are making…
Four Stages of a Successful Investor – Stage 3: Stock Investors
Continued from yesterday’s stage two post. Stage Three – Stock Investors Whether it’s after a few months or a few years, successful investors often grow tired of the evils of mutual funds and move towards making their own individual investments. They might have gotten a taste of the better gains through ETFs and now want to see what…
Four Stages of a Successful Investor – Stage 2: Mutual Fund and ETF Investors
Continued from yesterday’s stage one post. Stage Two – Mutual Fund and ETF Investors After saving up some money to invest, the next decision is where to put it to make more money than a CD or savings account can make. For many, the first stop is mutual funds. They have the best marketing and continually tell…
Four Stages of a Successful Investor – Stage 1: Saver
Successful investors evolve through four stages: Saver, Mutual Fund & ETF Investor, Stock Investor, Options Investor. I’ve identified these four stages as the primary path for many investors. This is clearly a generalization as I understand that some people inherit money and can skip the first stage. Others may never become options investors and can still be extremely…