CAPS lessons learned in 2008
January 11, 2009
– Comments (12)
Lesson 1:
Never close a pick in the red. Better to keep it open and wait it out. It will either go barkrupt, or give you another chance to see a return in the future.
Lesson 2:
When the big 10 have something to say, you would do well to listen. They didn't get to be in the top 10 by being wrong often.
Lesson 3:
Don't make a pick with out looking at the sheets. Just because you read an article or one of your favorite players picked it, dosen't mean it's a good idea. It ALWAYS pays to do a little research of your own.
Lesson 4:
If the government is getting involved with it, leave it the hell alone. It might go up, it might go down, or it might come knocking on your door at 2am. If you know enough to use intervention to your benefit, great. If you are like me and fairly new at all this, just stay away from them.
Lesson 5:
Ron Paul may not be your political 'go-to guy', but the man knows economics. Listen to what he says, and you might avoid a few bubbles in the future. Also a good way to hear what congress is up to from someone who dosen't like government intervention and supports the constitution above all else.
Lesson 6:
If something seems too good to be true, it probably is. If a stock has a terrible balance sheet, but the price just keeps going up, stay the hell away from it until you can find out WHY.
Lesson 7:
If you need to know something, ask the guys who make it their business to know. In CAPS, if you aren't sure how a particular sector works, find someone you specilizes in it and ask 'em. More often that not, they will be happy to teach you a bit.
Lesson 8:
Precious metals may not be your idea of a valuable commodity, but the rest of the planet disagrees. Fight it all you like, but until the rest of the world comes around, gold and silver will be looked at as stores of value far more valuable than any piece of paper you can print. If confidence in the currancy of your nation is in for a ruff ride, owning some gold or silver would be a good idea.
Lesson 9:
When someone decides to take a civil discussion and make it personal, walk away and don't look back. Don't get involved, because when people fling poo, it tends to splatter.
Lesson 10:
Never argue with an idiot. People might not be able to tell the differance.
Here's to a new year full of opportunity, for growth, for learning, and for making some money!
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