today I learned that there is no room for emotion in investing.
If you make a move, it better be for a strategic reason, and the minute that
reasoning no longer adds up dump the position. Cutting a loss is potentially the hardest thing for the majority of investors to do. But after watching other successful traders strategies I realized that the only way to make it is to be cold about your trades. Treat it like an enemy, watch it, understand its movements and then strike when a weakness is revealed.
Friday, September 11, 2009
Tuesday, September 8, 2009
An End, A Beginning, and a Fresh Outlook....
It appears that Friday was the last day of work for me at unique landscapes. I guess im glad in some way because it forces me to look for a consistent, year round job. I've known for a long time now that landscaping was not a career move, but I do like doing small jobs on the side. So, not that its a career choice, but now I'm looking for a more reasonable job, possibly less physically demanding. Hopefully something good comes along but I dont have very long to get situated here, I definately cant take a big lag in pay.
So aside from the here and now of my employment I think I've finally made the realization that I would like to get more involved with investing. I'm going to start out as a personal investor(which is where i stand), and then work towards creating an investment consultation/capital management firm. I believe I'd be good at it because I have a passion for investments. I love to learn about all kinds of investing; real estate, stocks, bonds, mutual funds, etc, But the thing I've realized about investing in the markets is that your capital stays liquid. It can be relocated within mere hours from one extreme to another, you can take advantage of a run in oil prices today and a fall the next. There is always a balance, its like physics where energy is never lost, its just transferred. Whenever something is down, something else is up. If you invest in realestate you are commited until you sell the property, in the early 2000's that was great but now its horrible. In a situation like this, you must know far in advance what moves you need to make to put them in motion.
So for this reason I know that investing is for me. I also think that Id like to try and create some program for younger people to invest. They need to learn that being a carpenter is great but you need to understand money and how it works in order to be really successful. I've never met a young person who doesnt want to succeed, it just seems that the normative education and life experiences teach them the opposite of what it takes to make it, and it eliminates alot of peoples potential. so I think its the most important thing to educate young people about investing, especially now.
I am also going to start some sort of publicly owned holdings firm. I believe that its a fairly quick way to amass large amounts of capital for investments. Ultimately this is what will open up the possibilities for serious investments.
I need to study, global economics more, and it seems that its much better to learn from other successful investors rather than TV.
I also need to study the law surrounding these endeavours, as well as the proper certifications and licenses that are required, and the basic layout of the business structure(how does it work?).
Anyway, for now I still say hold the short positions on the EQUITIES and FINANCIAL MARKETS. Once they drop wait for a good entrance point in a out of the country silver or gold company that is unhedged.
So aside from the here and now of my employment I think I've finally made the realization that I would like to get more involved with investing. I'm going to start out as a personal investor(which is where i stand), and then work towards creating an investment consultation/capital management firm. I believe I'd be good at it because I have a passion for investments. I love to learn about all kinds of investing; real estate, stocks, bonds, mutual funds, etc, But the thing I've realized about investing in the markets is that your capital stays liquid. It can be relocated within mere hours from one extreme to another, you can take advantage of a run in oil prices today and a fall the next. There is always a balance, its like physics where energy is never lost, its just transferred. Whenever something is down, something else is up. If you invest in realestate you are commited until you sell the property, in the early 2000's that was great but now its horrible. In a situation like this, you must know far in advance what moves you need to make to put them in motion.
So for this reason I know that investing is for me. I also think that Id like to try and create some program for younger people to invest. They need to learn that being a carpenter is great but you need to understand money and how it works in order to be really successful. I've never met a young person who doesnt want to succeed, it just seems that the normative education and life experiences teach them the opposite of what it takes to make it, and it eliminates alot of peoples potential. so I think its the most important thing to educate young people about investing, especially now.
I am also going to start some sort of publicly owned holdings firm. I believe that its a fairly quick way to amass large amounts of capital for investments. Ultimately this is what will open up the possibilities for serious investments.
I need to study, global economics more, and it seems that its much better to learn from other successful investors rather than TV.
I also need to study the law surrounding these endeavours, as well as the proper certifications and licenses that are required, and the basic layout of the business structure(how does it work?).
Anyway, for now I still say hold the short positions on the EQUITIES and FINANCIAL MARKETS. Once they drop wait for a good entrance point in a out of the country silver or gold company that is unhedged.
Wednesday, September 2, 2009
Eureka!! I was right on my gold trend assumptions
About a month ago now I began pointing out two trends in the gold chart that I believed had a good amount of validity. It just so happens that my assumptions were correct as today gold has broken above the upper convergence trend line to approx. $980. I think that if we break $980 our next major resistance is the $1000 level.
Since september is notoriously the strongest month for the precious metals I think what we're likely to see here is gold prices between the $990 and $1000 range. I have a feeling that they will ultimately fall back a bit in november because its traditionally a weaker month for the metal. So for now my thoughts are this....
Hold you short positions in the equities, especially financials for the next few weeks.
If china's Shanghai index is any foreshadow we have a few weeks of downside movement ahead of us. At that point I think I will sit tight until gold prices fall down a bit in november and then I will hop into a silver position for the coming of the new year. If you look at historical charts you'll notice that precious metals tend to do well with the start of the new year, especially around late january/february.
Since september is notoriously the strongest month for the precious metals I think what we're likely to see here is gold prices between the $990 and $1000 range. I have a feeling that they will ultimately fall back a bit in november because its traditionally a weaker month for the metal. So for now my thoughts are this....
Hold you short positions in the equities, especially financials for the next few weeks.
If china's Shanghai index is any foreshadow we have a few weeks of downside movement ahead of us. At that point I think I will sit tight until gold prices fall down a bit in november and then I will hop into a silver position for the coming of the new year. If you look at historical charts you'll notice that precious metals tend to do well with the start of the new year, especially around late january/february.
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