Let The Mission Begin!

5/30/2008 09:32:00 PM / Posted by Soullfire /

In thinking about my savings, finances, and current investments, I realized I need to step it up a few notches and get even more serious about it. I think my motivation comes after working a serious amount of OT at the office which made it clear to me that I need to work smarter, not harder.

This blog will cover all aspects of my investments- long, medium, and short term.

Risk level of my investments should be as follows:

Long term: 401k, IRAs - These are investment selections that are intended to last at least at least a year or longer. These are the kind of investments that don't require much maintenance....the kind you can buy and forget about for a while.

Medium term: 401K, IRAs, Trading Account - These investment selections are intended to last around 6 months up to 1 year. In this area my interest is momentum or swing plays that are on the move.

Short term: Trading Account - These are short term trades that can be as short as a few days to a few weeks up to a couple of months. The intent is apply good market timing to get in and out of stocks on the move and maximize profits. If my trading position last longer than two months, it's because my timing needs improvement.

This method of investment should cover all my bases..

Long term covers the "patient path" to riches. The biggest mistake people make in investing is that people lack the patience required to reap the rewards of investing. If their current investment doesn't jump by leaps and bounds right away they get impatient and sell and switch to something else. Looking for that golden egg, they wind up chasing performance by investing in areas that were last years darlings, but they may not be the stars of this year.

Medium term covers more active management in an attempt to boost performance. My goal is to beat the returns of my long term account.

Short term is my "swing for the fences" account. This is the closest to what someone would call a get rich quick plan. My goal here is to churn out enough profit in short term trading that will rival or even exceed my current corporate salary.

By taking the long, medium, and short term approaches to trading I believe I avoid putting all my eggs in one basket and increase my chances of achieving my ultimate goal of financial independence.

I'm hoping this blog will help me keep track of how I'm doing and serve as a memory marker to keep me on track with my investment activity. I tend to take on too many tasks at work and home and some of my investment plans tend to fall on the back burner.


thasthat on June 2, 2008 at 9:26 AM

very good definitions.. i love to read & learn about finance stuff. i'm gonna be visiting ur site a lot. =)

Comment by Kristin on June 5, 2008 at 8:45 PM

I like your new website design. ;)

Good luck on your mission - I look forward to following your progress.

Comment by Soulfire on June 8, 2008 at 1:29 AM

Thasthat - Thanks for stopping by! I'll try to keep it both interesting as well as informative.

Kristin- For some reason, this format made a good impression on me. ;-) Thanks for the well wishes. I like tracking your progress as well.

Post a Comment