Hold 'Em and Fold 'Em

When most analysts, financial planners, monetary fund specializers and investors seek to make up one's mind whether to purchase a peculiar stock they immediately travel to the financial statements to determine the growing potentiality of the company. Numbers and more than numbers. Then management analysis and industry speculation. Unless you are an experienced financial analyst (and there are not very many good ones) the numbers in the reported statements can be very misleading - just as the company Accountant desires them to be.

Let's not see fraud as there have been plentifulness of that both here and abroad. They are all honorable (I hope). Most corporate executive directors desire to stay within the law so they report statements that are true to the FASB - Financial Accounting Standards Board.

As the old expression goes, "Numbers don't lie, but prevaricators can figure". If you are good with accounting techniques you can do a bankrupt company expression good - on paper. On CNBC-TV many folks watch the CEOs telling a great narrative about their company. You sure don't anticipate them to state you the whole truth and nil but the truth, make you? That is why I always hit the tongueless button. And many modern times when you look to see what the insiders are doing in this fantastic (?) company this executive director and his brothers are selling out.

Then there is Morningstar that gives us those twinkling celestial bodies. Nothing like a 5-star common monetary fund - that have lost money for the past 4 years. So much of their information is old and if they cognize it you can be certain that have already been factored into the current price. How about those equal groups? Suppose this peculiar equal grouping is ranked 99th out of 100 or even 15th or lower. One question: why make you still ain it?

Why are you putting your money in the stock market at all? The thought was to do more than money. Right? Yet the bulk of small investors will throw a stock or common monetary fund while it travels down and down. Wouldn't it do more than sense to sell out once it loses a certain percentage from its highest terms after you purchase it? If you bought it at $20 and it is now $40 is it now clip to sell? I don't cognize so why not allow the terms action state you. If you only wanted to put on the line 10% when you bought your stop-loss would have got been $27. It now should still be 10%, sol you will be out at $36 if it begins down. Suppose you tracked that halt all the manner up to $80? This is why I have got always preached that Michigan do you money.

The best (?) analysts cognize very small more than than you. They just have got a bigger vocabulary about the market. You and your dart board can make as well. All any truly smart investor needs is common sense and the ability NOT to fall in love with any position. Know when to throw 'em and cognize when to fold up 'em.