Wednesday, May 9, 2012

How I think of things

My biggest mistake in all of my trades has been in making too many of them. I could show many charts of companies I have owned and gotten rid of too early and then failed to buy again. Well things are different now. I sleep well at night, tend to not get as excited and emotional, though I do continue to follow the market closely. Here is what I have been focusing on: 1. From Canslim I appreciate that new growth oriented companies with new products and services offer good chances. 2. From BASM I like following good talented leadership. 3. From Motley Fools, I like being able to put my senses into some actual research, rendering many ideas impractical. 4. From experience following the markets I do not like the flavor of the month, hot stocks, pharmaceuticals, pending news approvals, or rumors. I want to combine all these things, run the through my BS filters, and then INVEST and Hold. I sat through some 20% losses doing this, am now profitable. I can't remember the last time I had a 30% profit in a stock ( I remember some hairbrained options). The last honest 30% I had was my first stock trade in NFLX when it was 30 in 2007. Well, I have one now and hope and expect that it will continue to grow much beyond 30%. The only way to get that is to buy the kind of growth stocks I search out and hold onto.
Tesla reports after hours. I say scared money is out, easy move to 34. I've been holding though not as profitable. If they are executing well I will hold.