like I said, I am very conservative and cautious. I will never make 15% per month like some people here. But I can sleep at night because the chances of getting wiped out are almost nothing. The last few weeks, even with all the volatility, did little to my portfolio. Anyone who thinks it's impossible to have many trades without losses is either ignorant or too greedy or impatient to do it. There are known ways. If capital preservation is paramount, as it is with me, then you will adopt an approach consistent with it. You won't get rich quickly but if you're patient enough in 8-15 years you'll get there.
Nothing personal or disrespectful but some of these old farts are so light in the pocketbook that they can't risk taking their bottom penny out of their loafers for fear that the lost ballast might expose them to being carried off by the next big wind. TS
I've known the Chinese to really do strange things with their money. It's sad that the idiot got his parents retirement money involved. However, they should have known better, so I can't feel sorry for them either. He and his family thought he had found the "holy grail" of easy money. They found out what life's really all about. Throw caution to the wind with zero risk management. Add in greed, alot of ignorance, and you know the rest of the story... What a sad story, nonetheless.
Nothing new here. He treats it like a game. He gambled. Since it is a game, there are always winners, and theer are always losers. Some of people here are/will be winners, but majority are/will be losers. That's just the way it is
Do not be so convinced that 8-15 years will get you there. Just look at DJ from 1960s to early 1980s, it was circling 1000 for a long time. Just because we had an unprecedented bull run last 25 years, does not mean it will be the same in the next 25 years.
Is the Dow representative of the profits one takes off the table and places into other ventures such as real estate, small business, etc... When the DOW contracts, does it show the people who were on the short side and reaped the benefits??? When the Bubble Burst, I lost all my "Trading Money" But it didnt stop me from going on tour with a major artist at the time and enjoying that life (I screwed myself by not stashing all that tour cash, and wound up broke) I jumped back in the market slowly. But during that time I produced an Album for my wife and we hit the road traveling. Built a recording studio and a small trading system so I could trade. I learned to keep the entities separate. Trading funds her love of music and my love of computers. While the music career funds stuff like houses and real estate. Each has it's place. So what is the DOW other than an indicator of the current valuation of 30 stocks???? Trading is my 9 to 5. Music is my 5 - midnite They both have their place. I am too hyperactive to only be involved in just one thing. Of course I am not speaking for him, just making a point. The DOW isnt an indicator of how one manages his/her money. It only shows a valuation.... If I take a car valued at 1000 and use to make 100K, what is the true value of that car??? Think on these things....
The problem with this market and the new global contagion effects means anytime some X Fed official speaks, or some commie wannabe capitalist leader changes policy or the Japanese gov changes yen monetary policy we are all going to be ripped to shreds financially. There is no longer ANY place to invest without facing extreme volatility and wipe out risks. One can't even jump into 10 year treasuries due to severe price swings, inflation risks and volatility. If one puts their money under their mattress the inflation moth eats it. No, I am beginning to think Americans are the smartest on the planet. By buying tangible "things" and using debt to finance more buying they are exporting debt to our future enemies (China) and holding them at risk of being defaulted. Tangible things at least are only going to be going UP in price due to higher costs of production and limited natural resources. In the end I think its all going to be one big flea market of bartering where people exchange tangible "things" for other tangible "things" and "services". Even gold will lose its sparkle when food costs something "usable". I think I am going to start a new investment in long term durable things. This means real estate MUST soon come back strong when people realize none of these houses can be replaced for anywhere near current low prices due to increases in material and labor expenses. TS
It's one of the sweetest barometer of market action that I've ever seen (using 30 stocks to represent thousands ...) JJ
Just remember, WE'VE started many a battle with countries that have remained foes for centuries (can we get a history book check in aisle 4 please?). JJ