Classic Wall Street Wisdom
31479
Finance > Investing
May 17, 2007
Mikahamilton
Classic Wall Street Wisdom
A classic story told to new investor is the one in which a young investor seeks help from an old investor. The young investor had a serious problem. He had invested in extremely expensive stocks and the market was turning on him. The market was overvalued and he thought perhaps had invested in too much risk. Not knowing what to do he went to the elder investor to ask advice. The young man didn't sleep or eat because he was so nervous about his decision. After hearing the young man's problem, the old investor told him to sell and sell back to the sleeping point. This is perhaps simple wisdom from a simple time. However, there is truth in the advice. The old investor was telling the one young to sell enough not to destroy his financial stability but keep enough that if the market does increase he wouldn't kicking himself in the behind. Obviously neither investor knew what the motion of the market would be - after all it is about speculation. This are the same concerns that new and old investors alike have day in and day out. This begs the question, what is a sleeping point and how do you find it? A sleeping point is determined by a investment formula. These formulas are designed to help you inject caution into your investment portfolio when risks are high, and help reduce safety measure when risk are relatively low. This allows you to benefits when prices do increase. Investment formulate work automatically, once the formula is decided upon based on your needs and wants as an investor. A sleeping point refers to the specific point of a specific investor in which he feels comfortable financial (thus allowing him to sleep). Sleeping points differ from investor to investor. Some thrive on the thrill of an volatile market while others perhaps steady and slow grow of a flat cycle. Choosing an investment formula is only one of many tools which can help with investing. Remember formulas can be changed at any time to fit an investors changing needs or level of confidence. Never let an investment formula overrule sound research, and your own comfort level. Investment formulas help you with risk but certainly can not tell you what stocks to buy or what currency to trade. These are merely guidelines to help you figure out what direction you would like to go in your investment endeavors. For example if you are interested in a particular security you can use your formula to determine how far you are straying from your own investment goals. Alternatively it can also show you how well your choice adheres to your preset portfolio guidelines. Additionally, formulas allow for the casual investor to have professional help without having to pay professional fees. Financial advisors are great sources of information however, with each investment movement (buy, sell, trade) the advisor takes a commission. Your financial advisor profits even when you don't.Find your sleeping point, develop a investment formula, and go with your gut - these are the ways to achieve financial freedom.
More Articles & Tutorials and a Free Investing For Beginners E-Course at http://www.Global-Investment-Institute.com
send email to Mikahamilton
Write a Review
Add to My Favorite
Refer it to Friend
Report Article
Other links owned by this user
If you have begun to research investing, then it is a sign that you are interested in taking full responsibility for your financial state in general.
Category:
A bear market is caused by the decline in stock prices which are directly influenced by a decrease in company profits. Falling stock prices can also be a correction of over valued stock.
Category:
We've all seen it on TV in some fashion. A couple of people invest hard earned money into a stock that is guaranteed to go through the roof in just a couple of days based on a "friends" word. So they buy in and excitedly watch the value of their investmen
Category:
Cupcakes are made many different ways. Among us we find that many people have an ancestor, great grandmother, friend or other such person who knows someone who knows someone who knows how to create the best cake you will ever have in your life.
Category:
Years ago trading was usually an activity carried out by wealthy individuals from families that had likely been wealthy for generations. However, over time the markets began to accommodate institutions comprised of groups of investors.
Category:
The most common misconception that most people have about the wealthy is that they always drive around in fast and fancy cars, take lavish vacations, and live on large estates. While that may be true of some people, but the majority of the wealthy live no
Category:
There are plenty of opportunities in today's market for the average consumer to invest money and make a decent profit. One of the common reasons people do not invest is because they have difficulty in choosing what the best stock options are for their spe
Category:
We all dream of being successful investors and being able to enjoy the benefits of the money we have earned. So when it comes to investing your hard earned money, you will want to be sure that you take the necessary steps to protect your investment.
Category:
A bad credit score used to make it impossible for individuals and families to borrow money for home and car financing. Today, there are several companies which not only give individuals with bad credit unsecured loans but actually cater to people who have
Category:
All of us have heard of get rich quick schemes which are termed that for a very good reason they are often put together by those who are willing to take your money for promises that then do not pay off.
Category:
So many people work at becoming wealthy with no clear objective in mind other than they want to be wealthy. And most of them fail. Just like you can't build a house without a blueprint, you can't become wealthy without having clear outline of wealth strat
Category:
Hedge Funds guide investors in making a profit in high risk investments. Hedge Funds use technique called leverage. This is when the capital from a company's investors is combined with borrowed money from a bank.
Category:
It can be extremely hard to save for retirement. It is hard to part with your hard earned money today so it can be used sometime in the distant future. It is just as difficult to save for college, purchasing a new home, and any other financial goals.
Category:
Stability is extremely important for any successful investor. For most people this means living with your means or not spending more then you earn. Every time you over spend you are taking potential investments away from yourself.
Category:
The sooner you start, the more you will earn from compounded interest as well in fact, if you are able to leave your money in for 40 years, the money will likely more than double between years 30 and 40 alone.
Category:
In today's modern times, the incidents of identity theft is on the rise. With access to the Internet and the sharing of personal information online criminals have a easy time finding the information needed to steal your identity.
Category:
Every parent wants to make sure their children have their needs and wants filled however what are you teaching your children about the value of money and hard work.
Category:
Due to the low trading volumes, penny stocks are an investment option that comes with a sizeable amount of risk. The allure comes in the fact that at such low prices any changes are often measurable in hundreds of percent in a given day or two.
Category:
Immediate annuities were extremely popular in the past but their use has declined dramatically in the last few decades. This type of annuity is a good tool for people who would like to have a specific income over a set number of years. One risks of having
Category:
From time to time everyone has had the experience of having a ton of bills and little to no money to pay for them. This is why cash advance loans companies are popping up everywhere and their commercials dominate the air waves.
Category:
Other links at Finance > Investing
As a private investor, you?ll know that it?s almost impossible to guarantee a return, no matter how alluring the investment looks. It?s always important to assess the risk you may be taking with your money before you commit to investing
Category:
Every investment has risks that are obvious and risks that are hidden.
Category:
For the average person, the thought of short term investing doesn?t appear to be a viable option. Most people think first of the typical savings account, or maybe even a 401K, but those are not the only options. Savings accounts no longer have an
Category:
If you have ever considered real estate investing, and in particular, foreclosure investing, you have probably come across the term foreclosure flipping. This is one of the best ways to make money in real estate. In a nutshell, foreclosure flipping involv
Category:
Stop looking for motivated sellers, distressed sales, run down properties and focus on cash flow investing instead.
Category:
Site Sponsor
Directory Statistics
Articles: 68214
Categories: 501
Yahoo Entertainment
