Jeff Saut Presents: Resolved?!
Investor's New Year's resolutions...
Editor's Note: The following article was written by Raymond James Chief Investment Strategist, Jeff Saut. It has been reproduced with permission for the benefit of the Minyanville community.
Investor's New Year's resolutions, by John Magee -
Resolved, that in the coming year -
- I will not alienate my friends and antagonize my family by reminding the world on every possible occasion how right I was about the upturn - or downturn - in steels, motors, airlines, or whatever.
- When I buy a stock I will not mobilize all the good news to make it look pretty. I will try to consider both the favorable and unfavorable angles as impartially as I know how.
- I will not close out a stock position that is doing well by me for no other reason than that I have a profit. I will not cut short my gains in a good situation.
- I will not hang on to a stock that is persistently going against me. I will limit my loss, and close out any position that seems to have gone really badly before I am in danger of serious trouble.
- I will not be swayed or panicked by news flashes, rumors, tips, or well-meant advice.
- I will not put all my eggs in one basket, nor will I be swept off my feet to plunge into some unknown or low-priced stock on a purely emotional basis.
- I will not attempt to tell the market what a stock ought to be worth. I will try to understand what the market has to tell me about what people are willing to pay for it.
- I will never forget that I am not in the market primarily to prove - to my broker, my friends, my wife, etc. - that I am smarter than everybody else, but to protect and if possible to augment my capital."
The call for today: With these thoughts in mind we wish everybody a healthy and prosperous New Year!
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