Today's Market
by Dr Invest


I can't say that the water is fine. In fact, it is just a bit tepid. Friday, I invested into FDO, DLTR, and CATM. I had anticipated that Greece would work out their problems to open the way for the EuroPlan to be implemented. All that I need is two months of seasonal growth to see a 6 to 8% gain in carefully selected stocks.

What I had not anticipated was the concern of the market that next player in the EuroTribe, Italy, might default on their debt. Overall, we started low, buy by the end of the day had made significant gains with the DOW having risen .71%. Here is the return on the individual stock picks.

FDO (Family Dollar)              lost        .08%
DLTR (Dollar Tree)                lost        .56%
CATM (Cardtronics ATMs)   gained  1.08%
                                                               .44%    Total Gain

As of today, I have gained a total of .44% in the overall stock porfolio.

Over the coming week, we will revisit this initial investment. Key to your success in the market is limiting your losses. This means that when you buy a stock, you also determine the amount you are willing to loose. It my case, I have chosen a 6% stop-sell. If the stocks continue to grow, I will move my stop-sell behind the closing price.

I have said that it is not the opinons of analysts or politicians that determine the trend of the market. The market is the sole determinate of its price. Markets are irrational and humans are poor at determining what the market will do.

One of the top market gurus, has been right only 60% of the time. Most are right about the market only 30% of the time. This "human error" is one of the reasons for a BUY and HOLD philsophy.  Timing the market is a very poor method for investment.

Active portfolio management is not "timing the market" nor "day trading". Active portfolio management is OBSERVING, IDENTIFYING TRENDING STOCKS or BONDS, then BUYING, and SELLING both bonds and stocks when a clear trend changes. The purchase of STOCKS or BONDS is based upon strict rules for the purchase and sell of equities. When the rules are followed, the opportunities for success is enhanced.

(note: The above article is soley for entertainment purposes and not to be used as financial advice under any circumstances.)




re