Brand new to TSP- or just starting...

Bumping this thread up.

If you are new to the TSP, I recommend you read from the first post. I will be updating it since I wrote it about a decade ago, and the TSP has improved since then, AND we now have a whole 'nother group of TSP'ers in the military who are counting on getting TSP as part of their retirement option now.

Will work on an update just focused on their needs soon. Maybe a blogpost would be good.
 
James48843 said:
The TSP just put out this video- why 5% or more is key:

Click to expand...


Bump this thread back up.

It's a little dated, and several of the links don't work correctly (change the prefix to TSP.GOV/ if it's not working for you) , but-

this thread is a good place to start for newer employees/military personnel trying to figure out where and how to do the TSP thing to the best result.

Go back to the first post in this thread, and start reading.

Good luck!
 
Bump-

It's been a while since I noted this thread. Shame on me. I should point people here more often.

If you are new to the TSPTALK boards or to investing, please go back to the beginning of this thread, and read starting at the beginning-

Good information for new Federal employees about where to start investing, and how to do it successfully.

James48843
 
James48843 said:
Bump.

We seem to be getting a lot of fresh faces this week, so...if you are new around here, welcome aboard.

Please take five minutes, go to the start of this thread, and read the first few messages. It's good information for those who are now examining the TSP as an investment vehicle- new employees especially.
Click to expand...

Check your emotions at the door and good luck in 2010. :)

http://timing.typepad.com/


Markets go up. Markets go down.

It shouldn't matter much, but many new market timers find that their own personal mood fluctuates with the markets, moving from extreme euphoria as the markets soar to new heights to deep despair when the markets plunge to abysmal lows.

Why do market trends have such power over emotions?

Moods And Decisions

They don't need to, but many new market timers have difficulty keeping an objective mindset. They allow fear and greed to influence their trading decisions. They tend to follow the masses, and when they go with the crowd, they soon find that market trends not only influence their moods but their account balance as well.

There's a strong tendency to follow the crowd. There is a feeling of safety in numbers.

When you see a steady upward trend, you feel secure. Everyone is buying. They are all doing the same thing. When other people offer confirmation of your decisions, you feel safe and assured.

In a bull market, it isn't so bad to follow the crowd. When it's a strong bull market, the crowd is often right, and it makes sense to follow them. However, when the market turns around, feelings of safety and security can turn instantly into fear and panic.

Disappointment And Despair

Why? An obvious reason is that many new market timers don't have the ability or financial resources to sell short, and take advantage of a bear market. Using bear funds does level the playing field, but there is a psychological issue as well. It is difficult to know how to handle falling prices.

""Trading by the seat of your pants is NOT the way to profits. It is, however, the way to ruin."
For example, humans tend to be risk averse. When one is in a long (bullish) position and the markets suddenly turn, it's hard to accept losses, and even harder to execute a sell signal to protect capital before more damage is done.

Denial and avoidance set in. At that point, a market timer with a losing position panics, hopes that things will turn around, and waits for events that are unlikely to happen.

Usually market prices continues to fall, heavy losses are incurred, and as expected, disappointment and despair set in.

Think Of The Big Picture

It's critical to your survival as a market timer to stay calm and objective. Don't let your emotions interfere with your decision-making.

How do you stay detached and relaxed?

First, it's important to accept the fact that you will likely see many small losses as a market timer and that you should "expect" to see the markets turn against you.

Second, it's important to manage risk. Assume that the markets are likely to go against you occasionally. Don't risk too much on a single trade. Diversity has a place in market timing as well as all trading. Most of FibTimer's strategies have diversity built into them. Be sure to follow them as they were designed to be followed.

Think of the big picture; the long-term profits across a series of trades are all that matters, not the result of a single trade.

Third, follow a timing strategy with discipline. Trading by the seat of your pants is NOT the way to profits. It is, however, the way to ruin.

Conclusion

Don't allow your moods to fluctuate with the ups and downs of the markets. By trading in a disciplined manner, you can cultivate an unemotional, logical mindset that isn't overly influenced by market moods.

Armed with the right mindset and a disciplined timing strategy, you will be able to realize the huge profits that winning market timers achieve over time.
Click to expand...
 
Bump.

We seem to be getting a lot of fresh faces this week, so...if you are new around here, welcome aboard.

Please take five minutes, go to the start of this thread, and read the first few messages. It's good information for those who are now examining the TSP as an investment vehicle- new employees especially.
 
Bump.

If you are new to this board in the last five months, or a newer federal employee, I encourage you to go to the first post in this thread, and start reading there. Lots of good information for newer TSP investors.

Thanks, and good luck.
 
It's been about five months since this was last bumped up.

But if you are a newer federal employee, please take a moment to read the first post in this thread. You may find it useful.

Thanks
 
Bump up a notch to the top of the stack--

If you are new around here, and have not yet read this thread, please go back to the first post in this thread and settle in for a warm welcome, and a tip or two on how to become a millionaire.

Here's the tip - it takes TIME, and it takes EFFORT. You have to put your money in to win, and you have to be willing to leave in in there for while. Anyway- that's the tip of the day- go to the first post in this thread and read all about it. Welcome aboard new TSPTALKERS. Enjoy.
 
Excellent Advice James, and one that everyone NEEDS to hear, and DO !!!

Case in point.....

There are 2 guys that work with me, both came in around the same time. I begged and pleaded with them to put in AT LEAST what would give them the max gov't contribution. Well, one guy listened, and the other went for almost 6 years with the agency just putting in 1%.

I just spoke with the second guy last week, and he complained about how he WISHED he had listened to me. The guy who put in and got the MAX gov't contribution has over 200K, and the 2nd guy has about 56K.

Like I told them, it'd difficult to make up the money, and IMPOSSIBLE to make up the time.

He figures he'll have to work an additional 5 or more years now.:(
 
Bump-

If you are new to the TSP, be sure to read this thread from the beginning for a fresh perspective on things.

thanks- and good luck.
 
Excellent information James. If only the gov't gave employees this kind of information on day 1. Remember TSPers, it's a long term program. Don't get too caught up in the short term gyrations of the market. Most important, TSPtalk is a great place to learn and enhance your future, no matter what your investing skill level.
 
Very good information and very helpful to me. Thank you for posting it. I am switching from a gfund to a L Fund 2040 as of Monday.
 
You must log in or register to reply here.

Similar threads

tsptalk
New TSP L-fund
Replies
1
Views
7K
JTH
JTH
tsptalk
New Forum Coming Friday Afternoon
Replies
3
Views
75
tsptalk
tsptalk
TommyIV
  • Article Article
TSP Talk Weekly Wrap Up - Opportunity or Risk in the S-Fund?
Replies
0
Views
1K
TommyIV
TommyIV
tsptalk
  • Article Article
TSP Talk - More new highs heading into earnings headlines
Replies
0
Views
308
tsptalk
tsptalk
D
Small Withdrawal Tax Amount?
Replies
8
Views
5K
evilanne
evilanne
Back
Top