Ask Vendit Off Topic Questions

[Vendit]

I think there are others on this thread that are better qualified to talk about money management.

My style is to stay 70% long term "Blue Chip" invested in companies that have a very long track record of consistent gains. You won't find more than a handful of stocks that meet that criteria on the NASDAQ exchange. The NASDAQ is full of speculative trading stocks.

I leave 30% in my trading account and do nothing more than short term position trading with this account based on the following philosophy.>>>>

A trader should view money as nothing more than a tool. You take a calculated risk when you enter a trade. Have an upper target in mind to sell before you ever enter a trade and then just sell when it reaches your target without a thought. This brings your original money back to a "safe" home base (cash) as well as the profits it has earned.

In the event that a trade goes against you, you should also have a lower sell target in mind (a stop loss order). If it executes just take your capital and move on to the next trade target.

Doing this repetitively makes your wealth grow at a steady pace, which will beat most Wall Street money managers’ performance.

Sounds pretty simple but most people let emotions come into play. All of us are guilty.

:8-)



Reid