Sound Financial Advice in this Volatile Bull Era
Ok, i know my rating is like 40 TODAY, but i was rated an allstar for several months before that, and lost 41 points in a day, and hope some will come back to me.
Anyway, here is good advice, and i would follow it on Caps if they let us set limits.
1. Get out of everything you can.lol (no really, i'm mostly serious).
2. Pick a diversified portfolio of sectors/industries/commodoties and start to study them. LOOK FOR DIVIDENDS. Put a large portions on tried names with cash on hand. BUT DIVERSIFY.
3. Find the companies you like, and PICK TWO OR THREE TIMES AS MANY COMPANIES AS YOU WILL END UP BUYING.
4. SET BUY LIMITS at the lowest point the stock has seen in the last year (don't buy losers that have not seen highs in recent memory, or weirdo fantasy stuff).
5. Wait for your buys to happen, maybe 6 months from now.
For example, Apples 52 week low last week was $85. Set a buy at $85 and maybe one at $80, and DON'T BUY TILL IT GETS THERE.
Microsoft at $20 DON'T BUY FOR LESS, IT WILL RETURN.
YGE was at $3.31. SET YOUR LIMIT THERE OR BELOW (3.05)
Then pick three gold/metal stocks, and SOME INDEX STOCKS, and health care, defense, commodoties, foreign markets, WHATEVER BUT DO DIVERSIFY, EVEN IF YOU CAN ONLY BUY A HANDFUL OF EACH COMAPANY. You can add to winning positions in the future.
Set your limits below last weeks lows and don't fall for the bounce. Lows will be revisited, and exceeded, within the next year.
Well i don't know anything, but i hope some of you smarter folks will help me out with this.