« A LOOK BACK – AMAZING! | Home | More of the same? Not me! Felt like rape! »
STOCK FOR SALE – A TIME TO BUY!
By fred | June 12, 2008
This is the time that willseperate the men from the boys in relation to long term investing. If you wish to invest in the long term, not make money short term with the fantastic software that Invesment Systems has – if you want to tuck away good stock – cheap – then get to work.
The problem, and I have said this to readers of my old monthly stock letter I did for so many years, a million times -you cannot hide your head in the sand when stocks fal, in a recession period when the the market is down. You must develop a “sharks” mentality – in other words a time to buy. It takes more guts than most average investors have. The big money investors lick their chops at down markets, then is when they pick up jewels for half price. What to look for.
If it was me, I would watch what the Warren Buffets are buying, I would spend hours looking at top stocks , big money stocks on the NYSE to start with. The first thing I would click on if you were using YAHOO searching through stock, for example would be– “INSIDER TRADING” – look for a large amount of insiders buying currently – with NO selling. Oh, you may have to look and look and look some more but a few nights of labor to make big money is not going to hurt you. When you find insiders buying loads of stock in a down market for their stock then that it is likely where you should start putting some of your money.
I have always been amazed at the average investor. When the market is up, his stocks raising in price constantly they get all excited, happy as a lark. Instead of selling off some share for profit they buy more and more.
Then when the market is down, they are all concerned, worried, scared and often will sell.
So I ask you? How in the hell can you make money like that? They buy high and sell low – THEN they wonder why in the heck they have lost money. This is the reason I wrote my book so many years ago on PCA (Position Cost Averaging) as the math teaches you to sell automatically on raises and buy when stock are low. Yes, a stock you buy now may even go a little lower, however if it is a good stock, with strong insider buying, you can darn near bet that if you tuck it away for a few years you will likely have a double.
Takes guts! If you have the guts to invest now, you will be rich like the rest of the Wall Street sharpies.
The world of investing is for those that invest when there is “blood on the streets” – that time is now. Uncle Fred
Topics: Uncategorized | 2 Comments »
October 29th, 2008 at 6:17 pm
Hi Fred,
I never really understood PCA and was too lazy to read through your book (sorry.) Sames goes for Robert Lichello’s book. Boring to me.
But I think right now, PCA might have a big thing going for it now given the volatility of the markets around the world. I believe at this juncture, pPlaying the volatility card broadly is risky but can also be very rewarding depending on which market your choose.
I’m thinking Indexes and ETFs, not individual stocks at this volatile time.
I’m going to study up on the PCA program. I’m not a statistical type of person. I’ve also lost a lot in the market recently, as have many others. I really question whether the old buy and hold is relevant at this point, though I wish it were. Maybe by Dec. might be time to “harvest” some tax losses? I hate to do that, but I’m trying to prognosticate.
Do you think the PCA sort-term approach is apporpriate at this time using a bunch of various index funds and EFTs from various sectors and countries?
I so, what would you choose to go with and how would you handle the risks of buying high-low and selling he reverse on an almost daily basis which seems to be what’s happening now?
Thanks and be well,
Ola
October 30th, 2008 at 5:59 pm
Hi Ola,
PCA is so simple even a baby can do it Ola, I don’t care how lazy you feel about investing. You do not have to read my whole book, just look at a few of the examples.
What I always advocate and you should do it now to convince yourself that it may work on what ever stock you wish. Go to YAHOO and any stock you wish click it in, you will note that YAHOO has a spot (used to be in the upper left corner of a company’s site on YAHOO) click on there and it will tell you the past historical prices of the stock.
Copy off a list of that company’s stock prices for the past year or six months, then ‘pretend’ you traded using the Position Cost Averaging program. Pretend you trade monthly or weekly, whatever you decide. Pretend trading will give you confidence in what you are doing and will not cost you a dime, just a few hours of having fun learning to guide your own investment future.
To buy real stocks for a PCA program, I would maybe wait a bit. I have a hunch that there will be more blood in the streets. PCA will always correct itself, but it is really fun when you buy at the bottom when everybody is hidding their heads, and as the future gets better ride the system up, raking off profits.
Try the PRETEND first, learn before sticking your read money on the line.
Be good, your old square head buddy, Fred