Share Your Number

Share Your Number

KC

Investing 101 for Numberers - The basic things you should know.

Lee's blog post asking how to set out on the journey to become a well informed investor (and Michael's Money 101 forum) has got me thinking that it might be valuable to everyone if we create little hubs, single places where information on a subject can be posted, and with pointers out to Numberers blogs and comments.

http://www.shareyournumber.org/profiles/blogs/how-do-i-invest-with-...

Also, more generally, this shows a great way to use forums on this site - as a single place for a single topic where you can see what everybody thinks about how you can make progress on a particular learning course.

If you have any thoughts that you have learnt through your own experience, through your own reading, or things that you'd like others to comment upon, then here is one place you can communicate what you know, and what you'd like to know, on that particular subject.

If you decide to put your thoughts on this subject on a blog post, please just type one or two lines here on the forum, directing people to view your blog post, if it relates to the topic of the forum.

I do hope you'll all feel free to contribute, and to learn from other people's thoughts, by using topic-based "hub forums" like this one.

If you can think of other subjects that might be a good topic for a "hub forum", e.g. Real Estate 101 for Numberers, then feel free to start such a forum.

And hopefully such a thing might assist Adrian and Debbie in collecting together material that might find its way into the Secret books!

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See Diane's advice on stock market investing, and a couple of "stocks to watch" in her comment at Lee's blog:

http://www.shareyournumber.org/profiles/blogs/how-do-i-invest-with-...

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Does "investing for the long term", or "buy and hold", mean that you never use stop loss orders to get your portfolio out of the market when every one of your stocks keeps declining?

I love the idea of the "trailing stop loss" that moves the stop loss up, as the stock price moves up, a bit like a ratchet, so then when the stock price drops back by, say, 5% the sale happens automatically and you're out.

Is such a neat method of safeguarding any profits you've already made, forbidden in "buy and hold"?

Or does it require that you just sit there and watch your whole portfolio decline?



The Motley Fool is a major advocate of "buy and forget" so see their article, and have a look at the comments below that article where people wonder whether they should just sit there and watch their savings drop by 40%.

http://www.fool.com/investing/general/2008/11/14/so-long-short-term...

William O'Neill, founder of Investors Business Daily, says always sell if the stock price declines. For a brief summary and link to Amazon see:

http://www.curiouscat.com/invest/williamoneil.cfm

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In the interests of fairness and balance, I feel I should draw your attention to this free first chapter of the Motley Fool "buy and hold" book on investing, available for merely typing your e-mail address at:

http://www.fool.com/shop/newsletters/30/ecap.htm?CID=1612&sourc...

The book "Million Dollar Portfolio: How to Build and Grow a Panic-Proof Investment Portfolio" is due to be published on 30th December 2008 - sometime soon then.

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