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Reminders to self.....

Discussion in 'General Investing Discussion' started by Alan, 4th Mar, 2008.

  1. Alan

    Alan Well-Known Member

    Joined:
    15th Aug, 2005
    Posts:
    603
    Location:
    Sydney
    I'm personally hearing of more and more people either experiencing Margin Calls or are very near to it.

    I'm personally hearing of more and more people getting stressed over their property holdings through increasing interest or other similar reasons.

    I really don't care whether some think the way to make money in the Market is through Fundamental Analysis, Technical Analysis, going long, going short, contrarian purchases or other methods. In most cases you can probably make money through all methods depending on what your timeframes are, your skill levels, the returns you expect and the overall structure you employ. :rolleyes:

    Many people can make money in the short to medium term, but the current environment reminds me very strongly(sorry to state the obvious) that a VERY important part of any wealth creation strategy is the ability to be able to ride out these periods of uncertainty without having to liquidate valuable assets at a loss. Cashflow and the ability to access emergency funds are vital in this environment and yet it amazes me some of the stories I am hearing. :eek:

    Reminders to self.....

    1. Always ensure I have a reasonable buffer.
    2. Don't get too greedy.
    3. Keep educating myself.
    4. Don't let emotion rule my investment decisions.
    5. Read history to keep a healthy perspective of performance and dangers.


    What are some of the 'reminders' this period has given you?
     
  2. myarhidia

    myarhidia Member

    Joined:
    12th Oct, 2006
    Posts:
    21
    Location:
    Kingsgrove
    Always have a buffer of funds available to take advantage of the fire sales at times like this. :D
     
  3. DaveJ

    DaveJ Well-Known Member

    Joined:
    13th Nov, 2005
    Posts:
    123
    That a stock/house/managed fund which is currently cheaper then 2 months ago, won't be even cheaper in another 2 months! :rolleyes::D
     
  4. voigtstr

    voigtstr Well-Known Member

    Joined:
    24th Jan, 2007
    Posts:
    679
    Location:
    Hobart
    have a buffer for that too!
     
  5. Billv

    Billv Getting there

    Joined:
    15th Jul, 2007
    Posts:
    1,796
    Location:
    Sydney, NSW
    If the sharemarket has been going up and up and everyone says a correction is coming, then it's time to get out, pay my CGT and sleep well.
    Also, never trust the RBA.
    Cheers