What am I doing RIGHT (wrong?)?

[Single_Tasker]

imported post

Hi Folks,

OK I'll tell you again- I have the financial IQ of Yeast.... so I know I may be missing something(s).

I read the Update page every day. The author has been in G for a long time now. As I understand, this is a 'safe' fund. He gives a lot of reasons- charts & graphs, etc.- for staying in G.

I stayed in C & S the whole time he's been in G and I'm making money... not much but my account balance keeps eeking up, even though some days it goes back a little... but I'm ahead.

Every morning I check the Dow, S&P, NASDAQ. If they are down a little I do nothing. If they are up a little I cancel my previous night's interfund trasfers to Gand just STAY in the C & S funds. I have canceled nearly all of my transfers recently.

If I had just parked my money in G would I be ahead of where I am now?... I don't know how to compare to figure that out.

So... please tell me what I'm doing wrong or right. If I'm screwing up somehow I need to know!!!

Thanks,

Bill

 

[Rolo]

imported post

You and Tom have different ways of managing risk: he stays in G until the market looks more solid (or his black eye heals, hehe) and you stay in stocks until something goes wrong. The way the market is now, I opt for the latter, fully invested until it gets ugly.

A simple way to compute gains: just take the most recent share prices of the funds and divide them by the share prices of a particular prior day, say Jan 1.

 

[cowboy]

imported post

Single_Tasker wrote:

Hi Folks,

OK I'll tell you again- I have the financial IQ of Yeast.... so I know I may be missing something(s).

I read the Update page every day. The author has been in G for a long time now. As I understand, this is a 'safe' fund. He gives a lot of reasons- charts & graphs, etc.- for staying in G.

I stayed in C & S the whole time he's been in G and I'm making money... not much but my account balance keeps eeking up, even though some days it goes back a little... but I'm ahead.

Every morning I check the Dow, S&P, NASDAQ. If they are down a little I do nothing. If they are up a little I cancel my previous night's interfund trasfers to Gand just STAY in the C & S funds. I have canceled nearly all of my transfers recently.

If I had just parked my money in G would I be ahead of where I am now?... I don't know how to compare to figure that out.

So... please tell me what I'm doing wrong or right. If I'm screwing up somehow I need to know!!!

Thanks,

Bill

Yah it is only risk management is all. Custer thought he was winning to dude!

 

[Rolo]

imported post

cowboy wrote:

Yah it is only risk management is all. Custer thought he was winning to dude!

Custer assumed his strategy would work, that he had it figured out, and had no 'plan B', never asked 'What if I'm wrong?'; he never had a plan for risk. Successful investing involves mitigating risk while taking risk, be it sitting on the sidelines during uncertain markets, cutting losses, or diversifying.