Can?t Stand The Heat

It seems that every day I turn on the TV and find a Poker game. Texas No Limit seems to be all the rage these days. I love watching it. When I discuss this with others, their response is always the same, "You should play." Ah, but what they don't know is I stay out of the kitchen. As far as risk to reward ratio. That's a gamble I'm not willing to take. I prefer to invest my money. Sometimes I gamble in the stock market, but as long as I stay within my comfort zone (long term), I don't mind.

Tolerable risk should be the goal of every investor. Know your limits! Here are my big three don'ts:

  • Don't invest more than 30% of your portfolio in risky ventures;

  • Don't let your broker/advisor talk you into an investment;

  • Don't gamble with money you're not ready to loose.

    Here's a poem I wrote about a real person.

    There once was a man from the North East Who thought he could tame the great beast Money in hand, he headed to Wall Street A Bull market it was, an IPO investment he couldn't beat The morning bell rang and he started to buy?

    Drug store, MP3, Martha Stewart, and Be Free, Flashnet, Redhat, Eloan, and Goldman Sachs, Foundry Networks, Agilent, NextCard, and JNI corp, Goto, PCOrder, Free Markets, and Intertrust technologies, Ivillages, Keynote Systems, Radware, and Women, Kana, The Street, Internet Initiative, and Insweb, WWE, TicketMaster, CitySearch, and Ziff Davis.

    He felt so good, like a young man and spry The days rolled along and the market did swell Up 80% by the close of the bell.

    It was over the next few days that reality hit home The stocks started to plummet like the downfall of Rome A huge loss was incurred, sell everything without care Along with riding the bull you get tamed by the bear!

    This real man I'm speaking of has class action law suits against every one of these companies and the underwriters of the IPO. Here's a link to the law firm, Lovell Stewart Halebian LLP http://www.lshllp.com/homejump.ihtml?page=classaction.ihtml that happens to be representing this man in all these cases. To this gentlemen I have 6 words?if you can't stand the heat.

    About The Author

    Brian Weiss is owner operator of www.InvestmentRunner.com a specialty search engine with free investors software, spread sheets, investors dictionary, and financial weblog.

    admin@investmentrunner.com

    In The News:

    • pen paper and inkwell


    cat break through


    Invest In The Stock Market For The RIGHT Reason, Using The RIGHT Choices

    Invest in the stock market for the RIGHT reason, using... Read More

    Exchange Traded Funds Primer

    Exchange Traded Funds (ETFs) are a group of passive index... Read More

    Inertia

    One of the basic laws of physics is that a... Read More

    Trading vs Investing

    I often hear from people, "I don't trade. I invest.... Read More

    Bull or Bear?

    Cat or dog? Maybe Zebra. Shucks, I don't know, but... Read More

    Whos Calling?

    Its dinnertime and the phone rings. It's Joe Noname with... Read More

    Market Psychology

    Today we are inundated with tons of information about the... Read More

    Mutual Fund Commissions

    You have heard about a particular mutual fund from a... Read More

    Investing in Stocks and The Game of Monopoly

    To begin, you might look at playing the stock market... Read More

    Who Knows?

    The Shadow knows. Remember him? It seems a shadow has... Read More

    Risk Control

    Everything you invest in has risk so you want to... Read More

    Attitude Is [Almost] Everything

    I often play a little game with myself when I... Read More

    The Stock Market Doesnt Care if You are a Beginner?. Get Prepared to Succeed at Trading

    Stock trading remains a very competitive field and the stock... Read More

    Analyzing Growth Stocks: An Important Focus For Any Investor

    Analyzing growth stocks is an important focus for any investor.... Read More

    Complacency

    During the month of January the Dow Jones Industrial Average,... Read More

    Stock Loans

    Hedge current portfolio positions and gain access to capital resources... Read More

    The Secret to More Winning Trades is as Simple as Avoiding This Common Mistake

    If you're a normal human being, your need to feel... Read More

    Again With the Bubbles?

    A few years back ? it seems like an eternity... Read More

    Outsourcing

    It's about time someone spoke the truth concerning outsourcing. The... Read More

    Dont Buy Stocks based on P/E Ratio alone

    I use the P/E ratio as a secondary indicator for... Read More

    Trading Education: The Best of Both Worlds!

    I made my very first investment in the stock market... Read More

    Option Spread Trading

    Spread trading is a technique that can be used to... Read More

    Stock Market Investing Odds

    The greatest stock market myth is the idea that investing... Read More

    Race Horses and Mutual Funds

    For years investors have been taught to look into the... Read More

    Stocks Options Trading

    Let's assume that you want to make some serious money... Read More

    Index Fund Trading Using Technical Analysis and Swing Trading Strategies

    Index Fund Trading can be one of the most profitable...or... Read More

    Is The Bear In The Cage?

    For the last few weeks we have seen the stock... Read More

    Forecasting the Stock Market

    Every day I see in the financial section of newspapers... Read More

    Staying Sane While Wall Street Crashes

    Everybody is riding the Wall Street Roller coaster. Even if... Read More

    Evaluation II

    As I said in Part I everyone in the insane... Read More

    Option Trading Basics

    Options trading can increase the profits you make when trading... Read More

    The Skinny on Mutual Fund Investing

    Mutual fund investing is a lot like Thai cooking. Everyone... Read More

    The Seven Mistakes All Novice Traders Make and How to Correct Them

    We learnt the following the hard way! If any of... Read More