Money Management

Stock portfolio management is an art....it is not how a hedge fund would work but how one might take a different more classic way of looking at the stock market... in no particular order....

1) Think total return...first we want to establish a long term capital gain so you need to own the equity shares for more than one year (for the best capital gains tax treatment) and seek a company that also pays a dividend...so you are getting capital appreciation and income for a total return.

2) You need to be a bit of a contrarian. To buy low and sell high you have to buy when a stock is down or out of favor. You need to buck the trend or go against the crowd...you need to "plant some seeds" for the future. Too many people are net sellers on perceived bad news....many times if you have done your homework this presents the best buying opportunities.

3) You need to have patience and be able to hold a position through a short term market cycle...so you do need to know what you own..many times a new buy/ investment can be early and go down in value before it goes up..

4) Don't over trade. Trading against the house is a losers game...taxes and commissions never let you get ahead.

5) Cut losses if a new major trend starts against you, capital protection is always rule number one. Don't be afraid of cash....

6) Diversify prudently

7) Look for singles and doubles and sometimes triples....home run swings always get you into trouble.

8) Try to harvest/ sell 25% of your long term gains each year. Use your biggest gainers for gifting in December. Selling a portion of your best investments forces a reallocation of assets. Never fall in love with a position...usually after 3 to 4 years a cycle may have run its course.....

There is too much money now managed/ traded for the short term, it is not tax sensitive and it is over priced (high fees) and thus under performing.

Barkly seen here is taking his time looking around and sees many opportunities right now....the powerful global economy is not correctly understood by the short termers...and masses