Quote:
Originally Posted by GregWeld
Yep -- and it's why I purposely posted "Paper gains".... they come and they go... but now instead of a $59 grand paper gain I'm down to $30 grand...
 
I remember when I put new money to work around February 2011 (the account that I use for examples here).... and it went straight up about 200K.... and 3 or 4 months later (summer swoon) I was DOWN 200K.... so a 400K swing... but... always the big butt... I continued doing what I know works "most of the time"... bought a ton of stuff during the swoon and by Xmas I was up 335K (not counting any of the dividends -- we're just talking paper gains). We all know that since January 1st it's been off to the races.
I "pitch" DIVIDENDS because that is REAL MONEY.... money that I actually spend (quite liberally as you all know!  ) and that keeps coming regardless of the paper gain or loss. That's why I like them!
I keep pitching them in this thread because they're particularly useful for guys just getting started and because they buy shares when the markets are lower so they're automatic savings. |
Again, it isn't the value and total at a given time, but the dividends and income stream...
After all of 2011, i am still up, and i took a paycheck every month, and 10K extra to play with...Still up from my start point after all that...
High 5 figures in yearly income, and not hundreds of thousands, but still living nicely. that is why ,other than dividends, it is called unrealized gains...
Just to say that the power works.. me the little guy , was up and down 20K at times, per day up or down...per day , in 2011 !!! For me, that is a lot, especially if it went for two or three days.. but i stood the course...
