Joined: 24 Apr 2005
Location: Houston, Texas
|Posted: Sat Sep 20, 2008 2:47 pm Post subject: End of 3rd Qtr 2008
|Greetings Fellow Candliers
I know it's a little early for the end of Qtr, but I wanted to get this out as it may not change for awhile. As you may or may not know (Ha Ha), the markets have been upsey daisy one day and downsey daisy the next since Jan 08.
Sometime around the middle of August, my Mutual Funds hit my sell point and I just couldn't "Bear It" any longer. I was down 20%...the market was still wild...I placed my order to sell (well, not exactly sell) I cashed-in ALL of my 401k to one Mutual Fund which acts more like a savings account. Because of the manner in which mutual funds trade (the next day) I was down another 4% or 24% for the year, so far.
As it turns out, it was the right move at the right time...I still follow my funds and stocks daily, and as of 9-19-08 I would have been down another 20%. This would have been too much to "Bear" (oops it did it again)
Why was it a good move? Because now, I am making a positive +4.5% APR So what, if it is for one year or two years...I still have my goal set for 6-8 years down the road, and there is plenty of time left to jump in again.
My strategy is to keep following the Funds I choose, watch the market every day, and as soon as there are 2 - 3 months of positive trading with no major roller-coaster rides, I will once again re-enter the trading arena.
I am still trading a smaller amount of stocks, while biding my time, and will hold for no more than 1-2 weeks..taking small profits whenever I can.
You might ask, "What prompted Chickenhawk to cash it All in?
That's an easy one...Common Sense and The Candles
One day in August, I noticed the Dow was Down 200+...my mutual funds went Down.....The next day, the Dow was up 100+....my funds went down....the 3rd day the Dow was up again...and you guessed it...my funds were down again.
I thought, "How can the Dow go Up 100,200, 300 ? And my funds be going down?....I mean 100% of the Mutual Funds I owned?....something was terribly wrong with the total picture.
These were the same funds for the last 3 years (some Oil related), that were up 17%,40%,50% and now down for no apparent reason..against the Dow...The Enron light lit up big time
On an individual stock basis (trading a few here and there) the candles were (and still are) picking 75% winners, and I am still making a little money on trades..
What was happening
The mutual funders must be totally confused for 100% to go down when the Dow was up....they must know something I don't....or too confused to react.....the funds reached my sell point and I was forced to trigger......thank you again Candles...you saved the day
It's sad that many people do not take control of their finances and trust the company..or broker...I have read many articles lately that keep preaching to Hold...Wait and see...Everyone is in the same Boat
I am happy to say, "I am not in that Boat" Thanks to Steve, Rick, and the Candles
Who are Steve and Rick? Just attend a few Stock Chats and you will find out The Stock Chat really is habit forming..and one habit everyone should have
Yesterday's news talked about 3 Billionaires taking money out of the Money Markets in the U.S. in September and moving it around the world......Panic was in most investors minds expecting riots and looting "By October" if the economy crashed.....Money was cashed-in everywhere....luckily, the U.S. govt (also known as the "Wise One's") yesterday were pro active in shoring up the financials...is the move a good one...I don't know, and I don't care as I protected my money....remember Enron
I hope all of this is making sense to you, or helps in your decision making, as this is a most trying time.
Thanks for reading and see you at the next Stock Chat