Showing posts from November, 2021

Trading Not To Lose

As I previously wrote in the STOP-LOSS post, I love to compete and I HATE to lose. As an athlete, I was coached to "play to win" and don't "play to not lose". In sports this makes sense because if you play not to lose you might play tight and timid to avoid making mistakes and you can get outplayed. But as a trader, this is potentially a recipe for financial disaster. As a trader, the majority of your fleet should be aircraft carriers built on the principal of "don't lose money". Trading your  boats  "tight and timid" is possibly a good thing. It forces you to patiently wait for good entry points and to research for low-risk, high-reward opportunities. It helps you avoid chasing the highs and the "next big thing". Slow and steady often wins the race. That said, jet skis  can be fun to trade even if you fall off from time to time and a small portion of your  fleet  can be dedicated to these high-risk exhilarating  boats . Take

Low Tide Established

The first  Low Tide  in 49 days has been confirmed at 4589 (down 3% so far). This is the 8th  Low Tide  so far in 2021.  The October 4, 2021  Low Tide  fell 6% to 4279 The July 19, 2021  Low Tide  fell 4% to 4233 The May 12, 2021  Low Tide  fell 4% to 4057 The March 25, 2021  Low Tide  fell 3% to 3854 The March 4, 2021  Low Tide  fell 6% to 3723 The January 29, 2021  Low Tide  fell 5% to 3694 The January 4, 2021  Low Tide  fell 3% to 3663 Fair winds and following seas and buy  low and sell high! Trading Tide Levels  (at the time  of the post): Tide Level Falling  ( S&P  @ 4619) Tide Type: Low Tide  (winds strong with  VIX  around 26.5 knots) Subscribe to 10KT Newsletter Learn More About 10KT Facebook Twitter This is for informational purposes only and the information provided does not encompass all possible or probable outcomes. Nothing posted here is an indication of future results or is a guarantee or promise of future investment returns. Investing in stocks or bonds carries risk

One-Third X 3

As I mentioned in Diversify, Diversify, Diversify , NEVER put all of your eggs in one basket! You can begin diversifying by first selecting a  variety of investments ( boats ) for you to watch  and when you choose your boats (fleet) (portfolio) , you should consider the sector  each  boat  operates in. For example, you probably shouldn't create a  fleet  of only consumer discretionary  stocks  that all compete with each other in case they all generally move in the same direction. Choosing  boats  from different sectors allows you to profit from one sector when another sector might be struggling. It also enables you to risk a small portion of your portfolio to  speculative investments  hoping for the large returns than can come with speculative investments . When I set sail, I further  diversify  by launching several (usually up to three (3))  boats  within the same  boat . To clarify, let's say I like the conditions to sail $GM . First, I dedicate no more than 20% of my po


In the book, The Intelligent Investor by Graham (page 12, 2006), it talks about one of the most important concepts in investing which is to AVOID BIG LOSSES and it reads  "Once you lose 95% of your money, you have to gain 1,900% just to get back to where you started. " Gaining 1,900% is HARD!!! When I first started investing, I would put all of my eggs into one basket (the stock  WCOM  was one example.) And, in the first few years of doing this, I nearly lost EVERYTHING I INVESTED. Since learning those valuable lessons, I have remained  diversified  in my investments, never putting all my money into one investment and I use a STOP LOSS technique to avoid being paralyzed as I watch a stock fall. I win some and I lose some but I win more often than I lose and if any single investment goes extremely bad, I try to be positioned to never lose more than 20% of my overall portfolio. Today I can finally say words that I have been waiting for years to say: "I FINALLY MADE UP FOR