I have heard all these people saying you can no longer buy good company stocks and make money and that options will kill you and that value investing is dead. I also hear people saying there are no good dividend paying stocks and so forth and so on which would lead the non initiated reader into thinking they are saying some truth. So I would like to blog a bit about how to find out how to make money in the market. Though I use a few subscription services and have no problem paying for information I will concentrate of completely free streams of information for as long as I feel it necessary, perhaps indefinitely as there seems to be a lot, here is a recent chat session with a friend:
1/1/2013 9:28:57 PM Me: well I find I am more attracted to slow money than fast money.
1/1/2013 9:29:06 PM Me: I find that an interesting realization.
1/1/2013 9:29:56 PM AFriend: I think it’s a natural reaction to volatility.
1/1/2013 9:30:24 PM Me: As an example I read somewhere a matter of fact sounding statement that one could invest their money in a good REIT and expect around the same return as on real estate, approx 8%/yr average.
1/1/2013 9:31:10 PM Me: So I jumped on studying it and it looks very true, except some years tend to be way up and others are not so far below 8%. It is a good one to compat volatility.
1/1/2013 9:32:24 PM Me: I have recently been reviewing “income” opportunities in the market. These are the ones that are paying dividends, there are many out there that seem to be paying 8-18%/yr dividends. And everyone is screaming that income and value investing are gone.
1/1/2013 9:32:30 PM Me: So much bull*@#! out there.
1/1/2013 9:32:37 PM Me: And so many people making good money.
1/1/2013 9:33:13 PM Me: If you want to read your butt off for free get a free subscription to http://stockgumshoe.com
1/1/2013 9:33:35 PM Me: His style is a bit too wordy but he seems to be right on.
1/1/2013 9:35:27 PM Me: I am now holding off on stocks, lendingclub and cash and putting my earnings to REITs and related, until it balances, I am looking to allocate like that article that studies the talmud method of allocation I sent you.
1/1/2013 9:35:48 PM Me: 33% – cash reserves, real estate, business
1/1/2013 9:38:03 PM Me: BTW – There is another reaction to volatility I found that makes a lot of sense but I am not up to using it yet. They make short (and long) term trades based on projected volatility and risk less capital then simple trading, however, if you don’t know everything about options and risk too much you are dead! That is why most people cannot do it, they have not the trading discipline.
1/1/2013 9:38:24 PM Me: I will do that with the first $25K over my real estate balancing act.
1/1/2013 9:39:05 PM Me: But I won’t do it with less than $25K and I am not in a big hurry as it requires a lot more concentration and patience then I am exercising at the current time.