What is the best success you had in investing? What are you method to invest?

Question

I am interested in finding out what types of investing people do and the greatest success they had over a period of time. I am not interested in someone trying to sell me a product. Also, I am interested in finding out any failure they may have had in investing.

Answer 1

I'll tell you about some of my failures, you'll certainly learn more from them!

When trying to pick the bottom of a stock that's fallen a lot, don't buy your whole position at once! I did that when I bought Kohl's, KSS, at $60, and then it proceded to drop past $50. I eventually sold it around $49 I think, when in fact I should have been starting to buy some more around there. The point is you never know how low a stock price can go, so it's best to not to put all your money in all at once, because your timing might be wrong.

Answer 2

I spent over 30 years investing in stocks and mutual funds. I always used an "asset allocation" that suited my time horizon, risk tolerance and goals. I averaged around 3-5% more than the S&P 500 for most of those years. Fundemental analisis was my only source for stocks.
At $150 a year, Morningstar.com gives good Mutual Fund and Stock insights (never, ever, take a "good" rating as your only reason to invest in a product).

My biggest mistake was never using stops. I could have done a whole lot better with a defined exit plan.

Today I have 60% of my funds still invested for the long haul. The balance is traded (not investing) on a swing basis (sometimes on a day basis), using technicals as my only guide.

Learning charts is not easy. Trading is especially hard. 92%+ of all new traders fail.

I'm doing pretty good (for where I am in trading experiance). I'm still no where near my goals. This is hard work and takes an incredible amount of time and dedication. I'm reading books all the time. I just spent 5 days in Las Vegas at the "Traders Expo" and loved it.

Disipline is the key ingediant to trading success.

Investing and trading are not gambling. You don't buy or sell because you "feel" it's the right thing to do. You don't "know" what the next day will bring... or the next 2 seconds for that matter. Success is rooted in your staying in reality.

Tips,leads etc. are the best way to get creamed. Media (TV, Radio, Press, magazines etc.) are little better. Make the right decisions, for the right reasons. I can't push how important disipline and planning are.

If you're interested. I'll send you a list of books that can help you start exporing trading.

Good luck.

BTW: One other key point. Never put more than 2% of your investable assets into any one stock. The need to make a killing.... will kill you.

Answer 3

I bet my IRA (now Roth) in 1992 on a Latin America Mutual Fund. It dropped 50% within 3 months of my initial investment. I have consistently continued to purchase (dollar cost averaging) a fixed dollar amount each month since my initial investment.

There have obviously been some lows but the highs have been amazing especially the last few years (51% so far in 2007).

Dollar Cost Averaging is the way to go long term.

For individual stock investing look for the tools that Investor's Business Daily (IBD) offers.

Good Luck.

Answer 4

The best success was when the market was in an extreme depressed state to the extent that it can no longer go down. I did this for one year by accumulating in a small sum weekly on bluechips. The proof of the success was when it went up, I sold in tranche of one third within two weeks. I made 140% gain while the index went up by 110. I did not hang on to the holdings. If I did so, by now that gain of 140 would be reduced to 20%. I learn one important lesson is not to ever regret for realising your gain too soon.

As to the failure, I panicked on the subprime and sold my holding on Thursday and on Friday Bernake came out with lowering discount rate. That was another lesson to remember that if the system goes wrong, regulators would come out to help. I sold at the lowest point of the subprime crisis. The most difficult part for an investor is to control your fear while greeds come naturally.

I am now watching the fall of Citibank Group and hoping that one day it reaches a disgusting lowest level for me to buy. I know for certain that men are irrational.

Answer 5

I think the best success in investing/trading is consistency of profits when applying your method.

Anyone can tell you a war story about a stock they bought that soared. But can they replicate that and do that in any market? How many losers are they not telling you about.

I buy small cap breakouts in good markets, and this method has produced consistently profitable results over the past 5 years.