What a great kitschy title. It’s about as dry as I am on drugs. Please, keep in mind, that while I provide the following information to gather your thoughts. I am no investment professional and can hardly consider myself a blogger, let alone decent investor.
However, that said, I choose to recently manage my own 401k and in the pursuit of knowledge and learning, I’m posting my experiences here you for you to examine.
Much of the investment advice/learning material I’ve been able to find on the internet is focused on the ever evaluation of practically living stocks. The market breathes, if not by some imaginary force, also by an invisible pulse. I follow day traders, penny stockers, investment and portfolio managers, angel investors and hybrid media/investment types. Hardly ever can I find the static long investor, eager to share his wisdom. The breed of my fathers age, who in a time of deep perspective decided it would be a good idea to develop money, just doesn’t care about the little investor. Obvious reasons for this could be lazy investors don’t bother with the internet. They are after-all, baby-boomers, utterly inept when it comes to blending technology. And yet another reason could be disclosure. If your not trading your not shouting.
The first trade I ever performed was a buy of NVDA at 18.29 and a sell at 24.52. I had nailed a 52 week low and sold at near it’s peak. I held my investment for 2 months and made a 34% return. Beginners luck? I’m willing to think so.
As so eloquently detailed in my first post, I bought into BCS thinking it would be immune to the U.S. Economic slowdown and my naiveté got the best of me. I had been watching BCS since the March decline and decided, because it was a European bank, and it was minimally invested in the sub prime mortgage debacle, it should remain a sound investment. I bought in at 28.30 and after watching my pick loose envious amounts of steam, I decided it was time to cut my losses. I sold @ 25.80 for a loss of 8.6%.
I’m under the impression that because I have a smaller amount of capital to invest, I should invest more often. However, that too may eventually lead to false logic. Not to discount my own analysis, but I feel as though larger portfolio’s have more to loose. I for one would be cautious, so would you. As I look to tomorrow morning with the knowledge that there WILL be a rally, I’m attempting to decide which of my P/E winners that are at or near their 52 week lows AND have decent analysis, will be my monetary development. Round 2 anyone?
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