I was talking to my friend the other night about my dilemma. A second opinion and point of view can mean a whole lot. He was green, pure and away from the corruption and gambling this game had with it. He simply told me to invest in good companies!
I have told him how I hardly managed my ROTH IRA, but my ROTH IRA has out performed my regular account! The stress level is not there as much!
2011 is near and I want a different approach. I remember when I got into the game and how the basics of investing should start w/ a strong core (portfolio) that could weather the storm. Therefore, I will spend the next few weeks before the end of 2010 and look to buy into companies that pay dividends, have good financial standing, and most of all, good operational profit in their nature of business. I will allocate a big chunk to the big names, but also put some in growth stocks. I won't be trading as much as I'd like and did before. Part of the reason I once heard was because of 'taxes'. Just like the housing market. You try hard to sell homes, but you get taxed for all the hard work. Is it worth it, taking such a risk, only to have taxes take a chunk? The real reason though, is for me to try a different approach. I have a lifetime to get this right, hopefully I get it right.
With my other capital, I will swing and trade for profits ! Maybe I'll trade index funds instead, and change my approach. All I know is that patience is what I lacked in this game. Maybe I should study QQQQs, trade that, or SPYs.
I've spent Freshman and Sophomore years playing around. Junior level is around the corner and I hope I am able to finally grow up and mature myself !
For the Long Term, I think energy and resource companies are the place to be. Per Gekko, the biggest bubble in history have been the human beings !
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