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Thursday, April 28, 2016

The Gods and Goddesses of Investing and Trading



The Gods and Goddesses of Investing and Trading

I’ve been at this now for almost a month and my time is almost up. I hope I haven’t over stepped myself. I mean who am I to advise, or lecture other people about investing in the stock market. Nobody died and left me the book of knowledge. I hope the Gods and Goddesses of Investing and trading don’t feel compelled to strike me down with a thunderbolt of randomness.

The object of starting this blog was to put down in writing my investment philosophy, to make it tangible, to put it down in writing where it will exist outside of my own head. If other people can find some benefit in what I have written, I think that is a good thing. I’m still learning as I go along. I don’t think you ever stop learning. What I have written in these blogs about investing is what I have learned so far in this journey.

So to recap allow me to go over the main tenants of my approach as I’ve developed them so far. Below is my basic strategic framework for dealing with investing in the stock market. These topics can be found in my first five posts.

1)     Psychology  (what’s going on inside your own head)

2)     Current Market Environment  (what's going on inside the market's head)

3)     Stock Selection

4)     Portfolio Management

The personal Balance Sheet (see post on April 17) involves the tactics used to meet your investment goals which are listed below.

Liabilities…Psychology

Assets…….Margin of Safety

                    Risk Management

                    Wager Value

I don’t want to beat a dead horse but your biggest enemy in investing is yourself (the media is a close second). So it pays to know your self, or to at least make an attempt to know yourself. Try to examine your basic or hidden motivations for wanting to make money in the stock market. And remember the Gods and Goddesses of Investing and trading have to be soothed and appeased so when things are going well stay within yourself. Be humble and be thankful.

Tomorrow I will post a bookmark for everything I have posted this month to make for easier reference both for myself and whomever would like to read what I have written in this blog. I've enjoyed the experience of writing this blog but the urge to write is flagging. I might post further entries in the future. I guess it depends on whether I feel I have anything notable to say. Thanks for listening.



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