CSMS Magazine Staff Writer
After months of cruising America’s heartland, Andrew Robbins is back with the same refreshing analyses on the economy. CSMS Magazine is overly excited to be able to offer to the readers something they have been asking for in a long time. The article is below.
This article is written monthly and intended for the novice investor. It is my belief the reader will achieve success when she/he is making decisions that are best for their family. If you are a frequent reader you realize that I beat the same drum over and over until you incorporate one or two of my ideas and in the long run I bet that you will be a successful investor, trader, or speculator.
Through these articles I share a methodology that may increase the reader’s speculative or investor gain. And yes, I both invest and trade real money/stocks. Readers are encouraged to seek out and employ their own professional investment advisor or search out other plans that when combined may enhance their financial goals.
This summer I attended my 45th high school reunion. A recent retiree provided the following written comment to her classmates, “I hope I do not out live my retirement savings.” Interesting comment, for not only do we plan to save for the first car, first home, children and their education, but also end of life issues. From the moment one learns the value and need to manage capital the bells and whistles should sound, ‘Oh, how do I grow it?’ Yet for the majority of our society they share little desire to learn economics and its impact on their lives.
We read the economies of China and South American are growing at a fast pace. If one listens to conference calls or reads filings, we learn corporations that embrace global growth are exiting China while expanding in Viet Nam and India. It should be obvious that stable African governments/countries are on the global employers’ radar.
As I write this article the press is reporting, “Slower US job growth and income gains; the faltering economy may get another blow from spending cuts negotiated in Congress; monthly unemployment claims are over two million. The US lost its’ triple ‘A’ rating and commentators suggest US debt is junk status.” Sixty-million retirees did not receive a cost of living allowance. Yet, eighty percent of the workforce never felt the impact of the current recession/slowdown. Factor in the $32 per hour retiring factory worker and the $16 per hour replacement and one cannot visualize how workers will sustain governments, utilities, medical, and all other forms of monopolies.
The above paragraph is a simplistic brief description of the minefield investor/speculator venture into.
One of my basic rules for investing, ‘keep some money back’. The August stock sell off was a wonderful opportunity for the speculator to ‘ladder in’ and make multiple stock purchases. Ladder in, suggest the speculator purchases/buy as the stock price moved lower. We never know where or if the market bottoms/tops, we purchase/sell additional shares as price erodes or rises.
Markets struggle between greed and fear. Either extreme often result in significant price change. Factor in algorithmic trading (you against the machines) and you abound in what I call guerilla warfare. An investment rule derived from the readings of Ho Chi Minh or Che Guevara and embraced and practiced by me, as one engages the market, it demands you wait for the indexes to move toward your entry/exit point. Don’t chase, let the market come to you.
Throughout August you enjoyed ‘Stocks on Sale’. The next challenge, when to dump or take profits, for we always need to keep a few dollars ready for the next sale. If you followed previous suggestions and as I write the indexes have moved higher you now are confronted by the most difficult decision. When do you take profits? The answer is quite simple if you laddered in, ladder out.
Please remember, making a career of bottom picking or top prediction is a short lived profession.
Review the Trading Plan: My trading plan is quite simple. Readers should keep as much as 50% of your investment cash at the ready. As the market indexes dropped over 10%, stocks were on sale. One never buys all at once, rather as the market drifts lower your reserve dollars stand by to purchase new lows.
At some point the market will edge higher and you are faced with the decision, “Is it a trade or an investment?”
Investment rules include:
1.) Invest in companies that report profits and declare dividends.
2.) Look at the charts. Find points of support (floor) and resistance (ceiling).
3.) Listen/read conference calls.
4.) Never invest all your capital in a single trade.
5.) Do your own research. Never blindly follow the media’s headline.
And please remember, we make more money when our US neighbors are employed. The next election is all about JOBS, JOBS, where in the hell are the JOBS? If you reelect the same people one should not be surprised if things get worse.
Note: This magazine and the author are not in the business of providing financial services or advice. Prior to investing, readers must seek and pay for their own professional assistance.
Andrew Robbins is author and also a contributor to The Morning Eyes www.themorningeyes.com .
I felt the same way about investing, and my savings when I retired. I do not want to live with just my retirement money. I know that when that happen life will have increase dramatically and that savings money will not be enough. Therefore I has been looking to buy stock but before doing so I had to do many researches and keep an eye in the market to ensure my selections are the right ones. I have follow your guidelines because I believe in them, specially the one that said to not invest in only one trade. Thanks
It’s your money the way I see it
Author, Andrews Robbins, took us from a blinded mind to an open one by teaching us some of the tricks in the economy and also tries to open our eyes on how things work. It is obvious as Robbins said that those who have skills know how and when to invest/ trade in the economy can do well even if they cannot compete with machines. However, for those who do not have skills in this area, it is best for them to hire someone who do. It is in one’s best advantage to invest properly because if you do not care enough about your money, nobody else will. The best way for the United States to stay on top of the game in the Global market is to encourage new skills and competitiveness so they can attract more jobs as in the past.
What most investors are looking for is a place where they can invest less and earn more, it is and will always be about gain. Another interest point the author made which I will never forget is when the author stated that “Readers should keep as much as 50% of their investment cash as the ready”. When the market drop, one should sell and we should not buy all at once, the cash on hand should be used to purchase new low.
I recommend this article to everyone, especially those of us who work hard for our money so that we can gather few tips on how to invest properly for ourselves and our family’s future.
To sum up, it is in the best interest of the United States economy to grow because the stronger the job market, the better it is for the economy.
Commercial markets itself profitable and risk may be a losing venture. At this time there are not many who were formerly owned venture, including the speculative market and buying and selling stocks and the main reason is the situation and the global recession. This is what brings us back to the reasons which have caused erosion and the world’s big and small countries to this strong financial recession. One of the main reasons and the initial payment is a budget deficit of States during the long years of the Federal Reserve of the state budget as the cause of erosion and not being able to take advantage of them at a time when they desperately need. And exacerbated the crisis in each country with the payment of dues for retirees and financial assistance and food for the unemployed. This is also another contributor to the decrease in the state treasury. As for the speculation in the global stock market there are a lot of manipulation, but of course they do it right way. we see on the stock market closed a certain point, but be opened up or down sharply. How did this happen and why no one knows or wants to know there is still money in the account grow. The best way to reduce the loss in this case is to determine the ceiling of the sale or purchase in the event of high or low stock. And with all that there remains a profit of combining and funds from other losses.
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