updated 30 March 2001
ICQ# 1366135
Hobby Linx - Please Enable Java







"The purpose of Life is to be happy - His Holiness the Dali Lama."
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If you do the complete opposite of whatever I recommend, you are probably going to make a lot of money.   For example, lets check out my portfolio:  

E-Pawn (EPWN) down 99.9% 
Micro Strategies (MSTR) down 99.8%
Brothers Coffee (BEANQ) down  97.5%
WorldCom (WCOM) down 50.0%
Janus Word Wide Fund  (JAWWX) down 16.87%

How did I achieve such unbelievably terrible results?  I dunno, I guess I just know how to pick them.  So far in my investing career I have lost about $35k.  So what have I learned?  Well, don't invest on other peoples' advice for starters.  Next, don't invest on emotion either.  Last, don't be afraid of cutting your losses early instead of watching your net worth plummet.    Here is something I picked off the web:

Trading rules & thoughts of Jesse Livermore

-Never lose more than 10 percent of invested capital
in one situation. Cut losses quickly.
-Big money is made by "the sitting - not the thinking." Don't collect profits too soon.
-Determine the trend, then play it. If there's no trend, stay out. 
-Stocks are never too high to begin buying or too low to sell short.
-Major market moves anticipate events. Don't worry about the "why's," just the "whats." 
-Sideways markets are to be avoided. But in up markets you can go long (own stocks) and in down markets you can go short (borrow stocks from a broker, then sell them, hoping to repurchase at a lower price.)
-Patience makes money. Understand where the market is going and what you want before investing. 
-If a stock makes a precipitous drop and fails to rebound quickly, it is in for more losses. 
-Major trend changes, accompanied by heavy volume increases, can tell you whether to be in or out. 
-"At the end of a bull market, watch for wild capitalization, good stocks selling at 30, 40, 50, 60 times their annual earnings. These will be the same stocks that had previously traded at much lower multiples." 
-A stock's new high can signal higher highs. 
- Trade the top stocks in top groups. Buy an industry's leader.
-As a bull market's leaders falter, it could signal the bull's end. 
-Fix a point when you'd sell a stock. "You must obey your rules!" 
-Build a position by buying 20 percent of what you intend in a stock, then add 20, then 20 more, then the final 40. Analyze at each point to make sure what happens is what you intended. 
-After a long uptrend, if stocks churn and volume builds, the end could be near. ·
-Never meet a margin call and never average down. 
-Hold cash in reserve. "My biggest mistake was in not following this rule more often."
-Pocket some winnings from time to time. · "Emotional control is the most essential factor in playing the market." 
-Ignore all tips.
-Don't rely on hope. "Hoping a stock will do something is the true form of gambling." Have solid reasons for holding a stock. 
-To be a great trader, four strong mental characteristics are required: observation, the ability to observe facts without prejudice; memory, the ability to remember key events correctly, objectively; mathematics, an easy facility with numbers; and experience, the ability to retain and call up at will your experiences.
-"Nothing ever changes in the market." Players change, but "new players have no financial memory of the previous major cycles." In addition, "What has happened . . . will happen again and again and again. This is because human nature does not change, and it is human emotion that always gets in the way of human intelligence." 
-Three emotions must be understood. 1. Greed is a desire for more than one needs or deserves. Greed exists in every person. 2. Fear can appear at any time. It distorts reason. Reasonable people act unreasonably when afraid. And they get afraid when they start losing money. Judgment is impaired. 3. Hope goes hand in hand with greed. In the stock market, it distorts reason. Hope clouds facts, and the stock market deals only in facts. 
-"The stock market is never obvious. It is designed to fool most of the people most of the time."

One of the best sites to learn how to invest wisely is www.fool.com

If you want to be as rich as Bill Gates, check this out: philip.greenspun.com/bg

If you are investing for fun rather then profit, check out www.ragingbull.com

 
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