Investing 102

[GregWeld]

Originally Posted by JKnight

Yep...and there's always a loser (relative to today only) amongst the winners. For me it was Ford's (F) announcement of lower margins. Were it not for that, it would have been a heck of a day!!

I have 20,000 Ford (F) shares… I bought more yesterday. It's a very small holding for me - but still affected my days paper gain.

So here's why --- IF the economy is doing better so much so that the Fed can taper -- then people should be buying more cars. Now if EUROPE would just snap out of their recession (sooner rather than later)… then we'll be clicking on all 8 as they say.


Now -- here's your deal and why I pitch this (as will anyone with experience)… a FORD day like today - is why you have to have DIVERSIFICATION --- and no one stock or investment should be more than 5% of your total invested funds. That way - one "disaster" doesn't kill you. You might not like it - but it doesn't kill you. Today was a good eye opener to see why people press that.