Sunday, March 28, 2010

Buy n Hold is Dead!

Because β€œit’s an easy way to lose, not make, money.” And a few more great points here:


a) Monitor them constantly, looking for any change that affects the reasons why you bought them in the first place

b) Buy them in wide scales

c) Take profits even on your winners. Bulls make money, bears make money, hogs get slaughtered

d) No stock should comprise more than 20% of your portfolio at any time

e) The best way to sell a stock? – in increments

f) Invest in IRAs. Seek out high-yielding dividend-paying stocks that offer as much safety as possible. Cramer specifically mentioned master limited partnerships (also known as energy trusts), oil tanker stocks and real estate investment trusts.