Heya Traders!
First off, I LOVE Dave Ramsey! Here’s a guy that, instead of telling folks to get rich quick, he advises them how to get rich slowly and certainly.
SECONDLY… hey, no ragging me about stealing Dave’s stuff. This post of mine today is an example of “curated content”. I am very sensitive about plagiarism, as a number of outfits from abroad as well as based right here in the U.S. have taken my early material and passed it off as their own. But here’s just an example of, “Couldn’ta said it better myself Dave!”
By the way… feel free to ‘curate’ content of mine as well. It gets the right message to the right people and isn’t immoral or illegal if you do the following things:
1) Give credit to the original author
2) LINK to where the original content resides. If it’s pre-internet and doesn’t exist online, let the reader know where they can get the original work
3) Distribute the content in its entirety
4) Feel free to add your comments… whether you agree with or refute the content, do the first three steps and you’re covered!
Okay, so here’s the link to Dave Ramsey’s recent post:
http://www.daveramsey.com/newsletters/online/edition/investing-newsletter-sept0611?ectid=1109.1elpinvnl_ov
| September 6, 2011 |
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| Da Bulls and Da Bears: Who Are You Running With? |
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The Tip:
Don’t let the stock market’s swings dictate your investing strategy. Instead, rely on a steady, consistent plan to build wealth for the long term.
Investors have watched the stock market do some wild things recently. Remember those triple-digit Dow Jones Average swings? All that volatility separated investors into two sides: the bulls, who saw the market’s gyrations as a buying opportunity, and the bears, who were preparing for the end of the world.
Which type of investor are you?
Da Bulls
The bullish investors were snapping up “discounted” stocks. Fund managers spent billions to add to their stock holdings, and legendary investor Warren Buffet said, “The lower (stocks) go, the more I buy.”
That kind of strategy works for experienced, professional investors who make it their job to know when a stock is a good buy. But it isn’t a good example for the average investor. Dave always says you should never try to time the market, and he’s usually talking to investors who want to dump their funds in a market decline. But his advice works both ways. Don’t empty your bank account to buy up investments that are “on sale” either.
Da Bears
On the other side of the market are the bears who bailed on $14 billion in their mutual funds in just one week, turning to money market funds, Treasuries and precious metals. They listened to the 24/7 reporting of global economic issues and “expert” analysis of the stock market’s every move. No wonder the bears sought “safe havens” for their money.
The problem is, “safe” investments are usually never really safe, and their rates of return rarely even keep up with inflation.
So if you shouldn’t be a bull or a bear, what should you be?
Be the Tortoise
Slow. Steady. Consistent. Some may say boring. But this is the best way to build wealth:
- Get a Plan – Know what you’re investing in and why.
- Be Consistent – Know how much you’re going to invest and when. And stick to it no matter what the market is doing.
- Have a Long-Term View – Knowing the money you invest is for the future will keep you from focusing on what the market is doing today.
Another key to success as an investor is working with a financial advisor who will teach you how to make your own investing decisions. Dave’s Endorsed Local Providers (ELPs) are investing pros who agree with Dave’s philosophy and are ready to answer all your investing questions. Contact your ELP today! |
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Could not have said it better, Mr. Dave Ramsey! (BTW, I LOVE this guy…)
“Invest like a tortoise”, “Plan, Be Consistent, Have a Long-term View…” There are quite a bit of nuggets of wisdom in this 60-second read.
Personally, MY plan is to cut losers short and let winners run by using the Married Put strategy. When you can’t possibly lose more than 6% of your investment when you are wrong, but leave the upside open for growth, there’s a lot of opportunity and not too much risk.
See you out there, Traders!
Happy Trading,
Kurt
About Kurt Frankenberg
Kurt Frankenberg is an author and speaker about entrepreneurship, martial arts, and trading the stock and options markets. One of several "Biznesses" he founded as a teen, The Freedom School of Martial Arts, has been in continuous operation since 1986. Kurt lives in Colorado Springs with his wife Sabrina, German Shepherd Jovi, and his ninja cat Tabi.
I'm Kurt Frankenberg, and I have discovered how to truly put the odds on the side on the individual investor.