Wednesday, November 02, 2005

Never invest with your heart!

Never invest with your heart. Always buy low and sell high....never sell low if the fundamentals are still there...the masses tend to be wrong, and drive the market.

So on 10/27 I had this post thinking that I have just been lucky with my stock picks over the years. I was concerned because each of my stocks had dropped down a few points.

Here is what my 4 stocks have done since 10/27/05, as of this post.

SRCL + 7.6%
PETM + 9.6%
MSFT + 6.2%
CD + 2.8%

That is compared with SPY (a broad market tracker based on the S&P500) posting a 2.7% gain and DWC (a VERY broad market tracker based on the Wilshire 5000) posting a 3.1% gain.

So if you read my post justifying why I thought that those stocks were trading at a deep discount, and you bought because of it then congrats, you have beaten the market. Thats something that the experts tend to fail at. Its a good thing people refuse to hire me to recommend stocks...god forbid I make their clients rich!

You see for the same reason they won't hire me, they also ignore CD, SRCL, and PETM. They just don't understand them. They can't understand how someone who went to school for psychology can possibly know anything about stocks. Well, I didn't learn how to make all the mistakes that business majors learned. College is an assembly line education. I see things different than the million business students churned out each year. I also understand the stock market trades on emotion, and not financials.

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