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Risk Control: More Important Than Ever
“Andrew, is oil going up or down now? Should I sell my oil ETF?”
“I don’t know. How much were you looking to make and what’s your time frame?”
“I was looking for a 10% pop over the next few days and I’m down 18% now. Wait let me pull up a…now I’m down 19%.”
“So…you were willing to risk 19% or more to make 10%?”
“Uhhh….I guess so.”
“Yes, you should sell now. Sell everything. And with rationale like that, NEVER trade again.”
That’s a real conversation I had with a friend a few weeks back. I get a call similar to this one about…
15Feb2009 | Q1 Publishing | 0 comments | ContinuedThe Young and Investless
A quick clarification of some common advice:
“You’re young, you can afford more risk.â€
This statement has been uttered countless times by investment experts and, at heart, it’s very true. However, “more risk†does not imply that every new investor should consider throwing every bit of his or her money into a small Nicaraguan telecom company.
Instead, the intent of the phrase is such that risk implies fluctuation, and young investors simply have more time to ride the ups and downs of their investments, possibly absorb a few poor investments, and reallocate their portfolios if necessary.
Deceptive journalism breeds false hope in novice…
29Aug2008 | Oxbury Research | Comments Off | ContinuedA High Dividend Utility Stock: TRP
In these uncertain times, it’s important to balance your portfolio with a good mix of high yielding stocks. I will avoid touching upon REITs and Financial stocks for the time being because I’m unsure as to whether the worst is over. I’m the kind of guy who’s not interested in pharmaceutical plays, such as Pfizer (PFE), since I highly doubt its 6.4% yield. Looks unsustainable to me, especially when you consider the fact that it has a payout ratio over 100%.
Then, I turned to the utility sector and found TransCanada (TRP). And let me tell you — it’s an attractive…
11May2008 | Guest Contributor | Comments Off | Continued
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