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Re: aim hier post# 88

Tuesday, 12/21/2010 12:45:20 AM

Tuesday, December 21, 2010 12:45:20 AM

Post# of 289
I agree. The key is you have to find a system that suits your temperament and that you can actually use when money is at stake.

Nobody wants an investment to go against you, but if it does, you should know what to do and be confident enough to execute.

If you use only stocks with the STR system, you need to understand why they went down (for example, when Blockbuster went down it would have been a mistake to rebalance it because their business model was broken by Netflix, Red Box, etc).

Also, you need to find a constant value that you feel comfortable with. You might be able to sleep better with ten $2000 positions rather than two $10,000 stocks.

Otherwise, you can use funds / ETFs - or a mixture. Say 70% ETFs and 30% stock positions, if you want to get your feet wet analyzing stocks.

Praveen Puri
Author of "Stock Trading Riches"
The Stock Trading Riches System discussion board: http://investorshub.advfn.com/boards/board.aspx?board_id=19287

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