Class 2006

1. map”. A pre planned asset allocation generates positive results and eliminates emotional panic selling.

Buying cheap stocks a/k/a “Road crews erect “Dead End” signs for a reason”. Most stocks with low share prices wholesale nfl jerseys also arrive at wholesale jerseys china the bottom for a reason. There must be institutional interest to influence price, and many Wholesale NFL Jerseys China won’t even glance at stocks below $8 or $10.

Purchasing story stocks a/k/a “A good fable cheap nhl jerseys lulls a child to sleep”. Don’t get taken by compelling “story” stocks. The plots include a cure for cancer, a big oil strike or a revolutionary invention. Such promising stories rarely prove true. If the “story” materializes, the company will still be a buy.

Selling your winners a/k/a “You gotta know when to hold ’em'”. Don’t sell your winners. These companies combine outstanding management, product and cash flow, creating steady growth for wholesale jerseys china years. Holding these companies for the long run will compensate for other investing mistakes. In fact, one or two big winners can create real wealth.

Holding onto a peaked stock a/k/a “Trees don’t reach to the heavens, and cheap nba jerseys china companies don’t continue growth beyond reason”. Top companies peak for reasons such wholesale jerseys china as attrition of top management or competition. Systematic cheap nhl jerseys china pruning will help you avoid a rotting, unhealthy investment.

Under/over diversification a/k/a “Ideas are good, but a mind full of them is better”. Resist the urge to rely on a few stocks that you know. Lack of portfolio diversification leads to erratic and volatile returns, and owning several companies in the same industry also cheap nfl jerseys isn’t diversification. The best investment results happen by investing in leading companies across various industries.

Over diversification a/k/a “A portfolio stretched like an old T shirt won’t help an investor benefit from their insight”. You don’t create diversification by spreading yourself too thin. Although a mind full of ideas is good, ideas acted upon on a whim waste good thoughts.

Over trading a/k/a “Replanting a garden every week won’t produce high quality tomatoes”. Don’t follow market “noise” and bounce from sector to sector or theme to theme. This prevents investors from enjoying the rewards of a long term winner. Give stocks enough time to mature and compound.

Mr. Kimmel is a managing member of the Magnet Investment Group in Randolph, NJ and developed the MAGNET stock selection strategy. cheap jerseys china If you’re a member of the press, he available daily for interviews. Public appearances or group talks can also be scheduled.Articles Connexes：