Investing 102

[GregWeld]

Pretty amazing huh?? I mean -- all the noise that's on the news -- the world is exploding -- the employment rate has gone crazy - houses are worth ZERO and here's Altria -- UP 91%

[Sieg]

After buying five dividend stocks in the last couple weeks I glanced (kid duty and late) at the Dow this morning and had a tiny newbie panic attack. Just checked my positions on the 100 block purchases and it's insignificant dollar amount compared to their average 5.1% dividend yield.

[Bucketlist2012]

Originally Posted by Sieg

After buying five dividend stocks in the last couple weeks I glanced (kid duty and late) at the Dow this morning and had a tiny newbie panic attack. Just checked my positions on the 100 block purchases and it's insignificant dollar amount compared to their average 5.1% dividend yield.

Boy...The nail just got hit on the head..

It is not about the balance, but the income stream, or for some , the re-invested dividend that will grow over time..

Seig... Great point... That is the noise we should not listen too...

they are like weathermen...they spend the whole damn day talking about up or down, or sideways... They beat the poor horse until he says stop it...

So you are track when you tune out the noise and don't worry about the bouncing ball..

Saw the day coming, everything down but treasuries, and no big deal...

Just another day.

But I am looking to adjust my strategies... Doing good is not doing Great, and i am looking to improve my skills and returns..

[Sieg]

Originally Posted by solarguy09

Boy...The nail just got hit on the head..

It is not about the balance, but the income stream, or for some , the re-invested dividend that will grow over time...

Then I had another panic attack when I checked my last filled order and noticed I forgot to check reinvest dividend.

That's a historic paradigm shift for this kid.

[GregWeld]

Originally Posted by Sieg

After buying five dividend stocks in the last couple weeks I glanced (kid duty and late) at the Dow this morning and had a tiny newbie panic attack. Just checked my positions on the 100 block purchases and it's insignificant dollar amount compared to their average 5.1% dividend yield.

Good Post Sieg!

This is when -- I've said time after time -- after you buy and then when they're down and you're starting to second guess yourself -- go back and just revisit WHY you bought. Look at the 5 or 10 year chart -- check the 5 year total return - check that dividend percentage.... then INHALE and relax... If you did your homework -- and it's a name you know and understand and all those other things are correct... that's the best you can do. Ya bought LAST WEEK -- the little man said take it down - let's test Sieg's guts! Go back and look at the LONG TERM CHART.... low on the left high on the right? Is that time period a week? An hour? Or 5 YEARS. Relax.

[Bucketlist2012]

Originally Posted by GregWeld

Good Post Sieg!

This is when -- I've said time after time -- after you buy and then when they're down and you're starting to second guess yourself -- go back and just revisit WHY you bought. Look at the 5 or 10 year chart -- check the 5 year total return - check that dividend percentage.... then INHALE and relax... If you did your homework -- and it's a name you know and understand and all those other things are correct... that's the best you can do. Ya bought LAST WEEK -- the little man said take it down - let's test Sieg's guts! Go back and look at the LONG TERM CHART.... low on the left high on the right? Is that time period a week? An hour? Or 5 YEARS. Relax.

The little man taking it down....No doubt..

My phrase to my wife has been, "they are shaking the trees really hard, seeing who will be strong and hang on".. That was during the mid year craziness. Those 400 to 500 point runs in 2011 will happen in 2012. stay the course..

The Trees will get shaken hard...now I know that there is a little man that we hate, doing the shaking...

I was telling my wife, I try to be like the Character Mel Gibson played in "We were soldiers "..

During the chaos, he just stands there calm as can be , as bullets wiss by, and he see's the problems, or what needs to be done, or not done, and Just calmly does it...

I love it...I try to be that calm guy in a crisis of any kind.. Even the market roller coaster.. At the end of a cycle, things are good... I fugetaboutit moment to moment..

[GregWeld]

So my personal trainer comes on Monday AM's --- and he tried to sweat out the Double Double and the Chocolate shake I had for Friday nights dinner..... 10 seconds after he left I was in the hot tub contemplating life... and came up with this analogy:



4 guys are playing a round of golf.... I'm on the tee -- and the usual banter (noise) starts.... We bet $1 per hole -- and $100 for the game...

A buddy says - "he can hit the hell out of the ball when he's on -- or it's 15 yards into the woods"

Another buddy... "that trap is out 250 yards - ya gotta drive that or lay up"

They're now in my head.... Do I try to pound the driver and punch it 275 on the carry -- or do I hit the 3 wood and lay up short of the traps....

Here's MY THOUGHT PROCESS..... I know to win the hole I "should" punch it past the trap... but I also know if my game isn't spot on - I tend to slice when I swing too hard... (gambling or risk taking!). I also know if I swing nicely and just lay up a 3 wood I'll be right down the middle and have an easy 8 iron to the green.... A nice 8 iron on the green - a two put and I par and win the hole. My Steady Eddy game!

This goes on for 18 holes (18 stocks).... I can try to kill it -- OR I can swing easy - play the game - ignore the ribbing (noise).... and MAYBE I can win 10 of the 18 holes AND the GAME ---- netting me $110

I could have tried to pound the ball and win all 18 holes and the game.... but then I might have sliced into the water and the woods -- and had a couple snowmen and a couple "double holes in one" (1 plus 1 ='s an 11 ---- LOL) and only won 7 holes and lost the game.

[Bucketlist2012]

Originally Posted by GregWeld

So my personal trainer comes on Monday AM's --- and he tried to sweat out the Double Double and the Chocolate shake I had for Friday nights dinner..... 10 seconds after he left I was in the hot tub contemplating life... and came up with this analogy:



4 guys are playing a round of golf.... I'm on the tee -- and the usual banter (noise) starts.... We bet $1 per hole -- and $100 for the game...

A buddy says - "he can hit the hell out of the ball when he's on -- or it's 15 yards into the woods"

Another buddy... "that trap is out 250 yards - ya gotta drive that or lay up"

They're now in my head.... Do I try to pound the driver and punch it 275 on the carry -- or do I hit the 3 wood and lay up short of the traps....

Here's MY THOUGHT PROCESS..... I know to win the hole I "should" punch it past the trap... but I also know if my game isn't spot on - I tend to slice when I swing too hard... (gambling or risk taking!). I also know if I swing nicely and just lay up a 3 wood I'll be right down the middle and have an easy 8 iron to the green.... A nice 8 iron on the green - a two put and I par and win the hole. My Steady Eddy game!

This goes on for 18 holes (18 stocks).... I can try to kill it -- OR I can swing easy - play the game - ignore the ribbing (noise).... and MAYBE I can win 10 of the 18 holes AND the GAME ---- netting me $110

I could have tried to pound the ball and win all 18 holes and the game.... but then I might have sliced into the water and the woods -- and had a couple snowmen and a couple "double holes in one" (1 plus 1 ='s an 11 ---- LOL) and only won 7 holes and lost the game.

You know......I do not Golf at all, and your golfing lingo had me confused at first, as I read your post for the FIRST time....

When I got to the "using a 3 wood, and laying up before the traps", my gut said, "that is the answer"... Without even a breath, or second thought...

I know I am somewhat on the right track..

[Sieg]

G-Dub - For a guy that doesn't play much you have a pretty good grasp on the concept. You sand-bagging me?

[GregWeld]

Originally Posted by Sieg

G-Dub - For a guy that doesn't play much you have a pretty good grasp on the concept. You sand-bagging me?

Sadly -- it was all metaphors! What I "know" - does not necessarily translate to the actual play.