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After 30 years in the markets, Steve Briese has formed some maverick ideas about investing:
"A loss is a loss whether you sell or not. Holding on to a losing position is the sure way to more losses.
"Trading is counter intuitive, your natural inclination is almost always wrong in the market. Most investors can't bear holding on to a profit for fear of losing it, but hand on to a loss, hoping it will bounce back. You should be holding on to your winners hoping for larger profits and dumping your losers for fear of bigger losses.
"Who is going to make more money on a stock that goes from $80 to $8 and back to $100. You'll make 25% if you can hold on. But, after losing 90% of your investment, you will need a 1,000% gain just to break even. At the bottom, I'll buy 10 times the number of stocks you have and make 10 times as much on the way up. What if the stock never goes back up? You've lost 90% of your investment--I've risked almost nothing. It's pretty easy to see from this example that you don't need perfect market timing to do better than 'buy and hold'."
Don't have confidence to pick bottoms and tops? Don't have time to learn market timing? Can't count on your broker who's paid on a sales commission? You need Insider Money™. Steve Briese made his mark in the rough and tumble commodity futures markets. Now federal regulators have moved the stock investment game to his ballpark [see New era begin page 3]. Can you afford to play in this new ballpark without learning the ground rules?
REVEALED INSIDE: THE SECRET TO MARKET TIMING...
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