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Longevity

Short-term trading for the long-term.  Is that an oxymoron?  We donít think so.  We would all love to grab a 5 or 10 percent return on our money each day.  Itís note going to happen.  Running a marathon foot race is more about finishing than anything else.  Rephrased, itís about managing their resources. Many runners start out too fast.  They may be the first off the starting line but they burn out a couple of miles later because they didnít manager their resources for the long term.  This past Spring we heard stories from friends in the industry.  Some investors by this past May were down $250,000 or $500,000.  A broker friend shared of the client who had to cancel the contract for his $1 million dollar custom built house because the full amount of the home had effectively vaporized from his brokerage account.  The goal is to not only finish the race but to finish it in style.  Many arenít even finishing the race.  How do we get to the finish line in style?  Not only how do we get there in style, but how do we accomplish this in the shortest possible time.  The answer lies somewhere between the extremes.   You donít buy shares of a stock and not give them a second thought for 40 years, because you might be broke, or you more likely have earned a passbook return on your capital.  And you donít buy shares of a stock and sell them 60 seconds and a sixteenth of a point later, because 4 out of 5 day-traders lose money.  The successful path to the highest possible account balance, in the shortest possible time, with the ability to finish the race with style, is a model like the Stock Traders Press uses.  This isnít just a self-serving comment but an observation of real life investors.  Buying a stock that is likely to return a 10, 20, or 30 percent return in less than the same number of days is the best course.

What else factors into the mix?  Diversification is important.  You canít put all your eggs in one basketÖ..  or one stock, or one sector.  Using stop orders is important.  Limit your losses so you have capital to continue the race.  Play the downside.  You need to have an account approved for selling short or hedging a position with put options. If not you are only playing half the market.  Donít get discouraged with losses.  Losses are part of the game.  Many investors all too often lose money on 1 or 2 picks and become gun-shy.  Then they miss 5 or 6 winners in a row.  Investing profitability is about consistencyÖ just like anything else.  Read and study the markets.  Not so you can spend 10 hours a day researching stocks to buy, but that you can be more knowledgeable about the positions you take and all the many factors that affect those positions.  Decide to continue to play the game.  Some investors burn out on the market and walk away just as the market turns up after a decline.  Learn as much as you can about the markets and about yourself.  In regards to the market, where do you excel and in what areas do you need remedial training?  Like the marathon runner, manage your resources, train well, and determine to finish the raceÖÖin style.

   
 
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