starting a small portfolio - thoughts?, page-28

morning, may I suggest something.

All the stocks you mention are fundamentally dismal. Someone suggested you trial stockdoctor - I agree.

Perhaps take at least a trial subscription - or full - but then

Halve your kitty - ie. 2 X $7,500 (or a bit less if you take subs. out of it). Start two portfolios.


Portfolio one - buy and sell as you think as your strategy tells you.


Portfolio two - invest this in solid growing companies - they don't have to be big - but really look at them closely (and I mean closely - not a cursory glance - and don't take as true everything you read about them - actually investigate)
Buy 2 or 3 of these and stick with them until the wheels fall off - if they ever do.
Make sure they are ACTUALLY MAKING MONEY (not just promises or looking good) - don't be scared of dividend paying companies. Look for quality management. Talk to the management - make sure you 'feel' good about them. Keep your finger on the pulse very closely.
Support your management on hc and the like - fight for them. They will notice and they will give you time because, like everyone else, they will talk to a friend and supporter - don't expect to get a good reception if you dump on them.

See what the results are after 1 year, then 3 years etc.

After you sort yourself out - lets say in 5 years -

hold a larger amount of cash than most people would normally hold - don't treat it as lost opportunity only gathering a bit of interest -- treat it as cash waiting for bargains -- wait until we have a crisis - we have them regularly these days - the world is going to end at least 3 times a year presently -- then buy what you now know is good and solid - pick them up when others throw the baby out with the water.
At this point there are two things that can defeat you - 1. fear, that the sp will drop lower and you will be worth less - get over that fear, look at your research. 2. Fear that the sp will go lower and you might be able to buy more - once again get over that fear -- wait for what you think is a bottom and recovering and get in - you WILL not pick the bottom many times - but sometimes you will - but, your research will carry you through - even if it takes a few months to get back on track.
What I have found is that if you pick it even close to right - many of those bargains pay for themselves in dividends in the next couple of years - so it isn't long before you are in free ride territory anyway.
In short what you are doing is using this modern market stupidity - bots, flash crashes, hedging and the like - to pick the eyes out of quality companies - bots don't care a hoot if a business is solid - owners of companies do - make yourself an owner - use these movements to your advantage - the game has changed in the last few years - not many realise it yet, they just complain about it.


This strategy will show you results that are pretty hard to deny - and you will sleep well in later years.

Hope this helps, have a great day.

Pinto