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Longevity
Short-term
trading for the long-term.� Is that an oxymoron?�
We don�t think so.� We would all love to grab a 5 or
10 percent return on our money each day.� It�s note going
to happen.� Running a marathon foot race is more about
finishing than anything else.�
Rephrased, it�s 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 didn�t 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 aren�t 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 don�t 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 don�t 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 isn�t 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 can�t put all your eggs in one basket�..�
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.�
Don�t 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 consistency� 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 race��in style.
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