We are a commune of inquiring, skeptical, politically centrist, capitalist, anglophile, traditionalist New England Yankee humans, humanoids, and animals with many interests beyond and above politics. Each of us has had a high-school education (or GED), but all had ADD so didn't pay attention very well, especially the dogs. Each one of us does "try my best to be just like I am," and none of us enjoys working for others, including for Maggie, from whom we receive neither a nickel nor a dime. Freedom from nags, cranks, government, do-gooders, control-freaks and idiots is all that we ask for.
The US dollar is too weak to cut rates. IMO. Although the Fed says it is not their job to prop up the dollar. Yesterday (Monday) was the 'Bank Holiday' in the Anglosphere. I think all the markets were closed. If the market does drops 20% I am buying! ( a Dow 30 mutual fund. ) I always say that when the market tanks though and I always chicken out.
Does that mean buy low, sell high? If so then I am right with you Buddy. It is much easier said then done. I know that to make a profit one has to take a profit, but that simple concept is really hard to enact too. I do think (hope)this bull market could have a little ways to go yet. But I do not understand hedges and derivatives and if they have undercut the indexes than all bets could be off. This subprime market problem does not sound that bad to me but maybe that is because my first mortgage was at 14 1/2 %.
P, I agree --the concept is so simple to grasp yet so difficult to do.
Perhaps the best one thing one could do is not to be afraid to take a profit. And then not to be afraid to look outside the comfort zone for undervalued stocks, as being quick to take profits, in a rising market, may force you to either finds new plays or to grimly repurchase higher what you just sold lower.
I learned my best lessons getting burned--or more properly, burning myself. I think it may be the only way to learn.
So mistakes are not really mistakes if you--deliberately & carefully--learn from 'em (*really* learn, not just "do the opposite next time").
Learn to objectively observe your 'self', and how it works viz the mkt. So that losses can always be mentally converted to "tuition costs".
And, never ever let a loss get so big it drives you out of the game, because you have to stay in the game to get any good out of that dearly-bought education.
Thanks Buddy. Hate losing hard earned money. In BC, I have seen a few 'Boom and Bust' economys. Canada and the North in general can be very good and/or brutal to investors, especially in oil and gas and gold. Commodities and raw resources are very expensive to develop and can be enticing to investors too. Things are good for commodities lately but I won't forget watching all the rigs pull out in the 80's. I am a chicken now and stick with conservative funds. No more penny gold stocks for me. I used to like watching the old guys play the penny golds before they busted the Vancouver exchange. They were just like gambling and I could not resist a few go rounds. I guess I almost broke even on em but I should have quit when I was a little ahead. heh. Famous last words.
Colorful as hell, tho --and that's good --we need gamblers and good stories. Else everything turns gray and dull. Say, who would you rather be marooned with (if you had to be marooned), some perfecto or one of them grizzled old prospecters?