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.
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