 |
The 6 Percent Solution
|
|
|
Below is the current strategy I use when investing my money in the stock market. I may make slight changes and adjustments to this strategy as time goes by, but the general concept will always stay the same.
-------------------------------------------------------------------------------------------
If you make 6% 12 times you double your money.
If you double your money 8 times it becomes $1.2 million.
[Starting with only $5k]
-------------------------------------------------------------------------------------------
Portfolio Rules
- Always know where my next 6% goal is.
- Sell all positions every time goal is reached.
- No more than 4 stocks at a time.
Stock Rules
- Plan the trade, trade the plan (know exactly where I am going to buy and where I am going to sell before pulling the trigger)
- Never let a gain turn into a loss. Use stops.
- Never lose more than 2%.
- Always sell once up 5-10%.
Stock Picking Rules
- Avoid stocks with known upcoming catalysts.
- Pick stocks based on trends and technicals.
- Look for stocks with potential for 5-10% gains.
- Never pick stocks under $20.
- Never pick stocks with average volume under 500,000.
Other Rules
- Never hold a stock through earnings.
This strategy forces me to acknowledge some very important concepts that I believe make me a better investor.
- You will get sidetracked without a solid plan.
- Investing is all about discipline. Make a plan and stick to it.
- If you want to set your goals high, you need to take lots of baby steps to reach them.
|
|
|
|
feed my brain...
About Me
Home
Entrepreneurship
Ideas
Tech
Money
Marketing
Other
