Bill Gates Looks Funny

I'm sitting here watching an interview with Bill Gates on CNN and I ask myself, "With all that money, should Bill Gates look better?" My answer is obvious, but maybe I am wrong. Maybe with all the money the Czar of Microsoft could "splurge" a little and get a nice looking wardrobe, maybe a cleaner haircut, who knows what he could do! My point is that he really looks like he doesn't get out much; I guess that is the case with most billionaires? Gee I sure hope not, but maybe that is the case. Oh well.

Nonetheless, the world has been to say the least interesting the last few weeks. I don't know how many AIG stories I have read in the last few weeks. My opinion, let them fail, and that bailout money for the institutions that would be in trouble if AIG failed. But that is my opinion.

Sooner or later I am sure that this fiasco will blow over, but when is a mystery.

Have We Hit Bottom?

Hello everyone.
The last few weeks are interesting at best. The S&P has been floating, literally, at a MAJOR support zone. As the price broke support, I was seeing a great opportunity. Last week we saw the S&P come up to test the new resistance, and what happens?

It broke through.

Now I was set up great. I was thinking it would kiss this new resistance level then walk off the cliff. But no, instead we saw the S&P climb, as it has for the last few days. Although we have consolidated and consolidated, my question is if we stay at this level, is this the bottom? Are we just looking for an excuse to drive the markets back up? If so, then what are we waiting for?

To be a trader today is very interesting. This isn't an arena where we know the overall trend. As I watch the markets today, I'm glad that I know what I know. Opportunity is here, it is always here, and knowing when to grab it is what we all need to know today to thrive in this market. I just wish the damn stock I'm watching right now would "conform" and go my way!

Needless to say, my plan is sound and I know that my position is not exposing me to a lot of risk. And this should be the same for traders everywhere. I run into people everyday that tell me what has happened to there 401k's, and the best advice I can give is to learn how to manage your money. I know the markets tanked, but honestly if there were a plan in place for some of these people and their life's savings, would we hear about people losing years of savings?

I am going to be talking about plans a lot, because it is important. It should be a cornerstone of a trader's career. I haven't been trading for long, but I like to reiterate the obvious. For anyone who invests, make a plan.

As for hitting the bottom, we won't know till after it's happened. But look around, and tell me, are the signs visible? Do you see what I see?

Creating a Plan

Hello everyone,
It has been a while since we last spoke, and I would like to again make a new suggestion to those who are hungry to invest. Investing can make you millions, and can make you lose millions too if you are not careful. One of the most powerful, and also most difficult idea to maintain, is to have a plan. Whether you are a real estate investor or stock, options, or futures investor, having a plan is THE cornerstone to any investor's career and to invest without one is dangerous.

I believe most people fail at investing because they is no plan. I am defining failure not only as losing money, but also not making money. Now if your plan allocates your investments returning only 5% a year, and you have defined this and met your goals, then your plan is a success! But if you throw your money into a 401k program, with no definite plan in mind of where you want you money to grow, then how can you call yourself a successful investor? This is typical of how a gambler plays; throw your money on the table, pick up the cards dealt, and hope you have the winning hand. There is no control here, no matter how well you define your skills to interpret your conditions.

Not having a plan introduces demons with your investments. First, the lack of rules creates an environment where conditions will affect your position that could be controlled otherwise. I am talking about setting up criteria in an investment, such as not buying a stock unless it matches a set of rules, or even not buying a property unless it falls into a certain window of characteristics. In example, if you have a rental property, and are having issues with cashflow because tenants are moving in & out, you could set a rule where you require a tenant to sign a longer term lease. Or with stocks, you may set a rule where you only but a stock that is in an established uptrend.

Second, be consistent with your rules. Don't deviate. How can you know how your program is working when you are changing it to fit your desires? Not every investment is rosy, especially now. So why would you deviate from rules that define your ideal investment? Sure you may take less trades, buy less properties; but the investments you do make will be well defined, and more profitable overall. John Wayne didn't go to Wall Street for a reason, so don't be a John Wayne there either.

Lastly, greed is not good. It clouds the mind. Motivation, and the desire to become a better investor is good, but often this feeling and ideology will morph into greed. Be aware and avoid this completely.

Until next time,
John

Don't Be Stupid

Today I had a very chilling experience in the market today. It wasn't because of the stock market took a dive; instead it was due to sheer stupidity. This week I broke two very important rules, and because of that I put myself in a position that was not my best interest. It is very important to know your own rules, and to abide by them no matter what. More important, the ability to self govern, and the ability to recognize your own mistakes before anybody else is crucial.

My first was a mistake of laziness and stupidity. I failed to keep an eye on the market conditions. I thought my investments were safe and secure, and I could take a night off from looking at the market. I woke up this morning and saw the company Research In Motion (RIMM) dropped over nine dollars per share this morning. It stung a little bit, because this could have been avoided if I had read the news. But I didn't and I lost little money today; not because the market did something abnormal, but I failed to keep up with the positions I was holding. This should be a lesson to anybody investing that you should always maintain good stewardship of your investments; the minute you look away everything runs south.

My second mistake was a mistake that plagues every investor. I believe this is the worst plague that infests investors because it is the most prevalent. If I haven't talked about this already I'm going to talk about it a lot more because it's important. I'm talking about emotions. I let my emotions get the best to me today, and because of that I made some poor decisions. Letting your emotions drive your decisions to be the most horrifying experience to imagine. If you're starting out in investing and learned anything learned this first: put your emotions on the sidelines.

Please don't get me wrong; I did not lose all a lot of money today. The point is I acted in a way that was unprofessional, and loses you money. Let us be a lesson to everybody, because I would not be writing about this unless I cared. I wish that everybody is successful in his or her investing career and I am here to help those who seek it.
Thank you

Don't Give out Bad Advice

That's right don't give out bad advice. I had the opportunity today to read on article which advice was given that wasn't so great. To do yourself a favor, if you're going to give out advice, make sure it's advice people to actually use. Let's try to guide people in the right direction. I'm tired of seeing people lose money because of bad device from those in positions that could actually help.

Blogging From My Mobile

I am testing this new method of blogging. It is amazing what we are able to do with technology today. Ever since I got this blackberry I have been intrigued with what it can do. It seems like every day I discover a new thing! I demand that everyone experiment with this so you too can unleash the benefits of technology!
Sent from my Verizon Wireless BlackBerry

Meetup.com

Hello,

I have a meetup.com club, which I am trying to organize a meeting. The link to view the club is on this blog somewhere. I invite everyone to please join and learn more about investing. This is for every one's benefit and I look forward to share my knowledge, as well as learn.

Thank you,
John