The professional money management apparatus likes to profess “low-risk” investments, while promoting fraudulent ipo’s–like FB, ZNGA, LOCK and GRPN. They tell you to “cut losses” quickly and “allocate assets broadly”–and to leave a little room for a social media secondary or two.
My greatest attribute is my willingness to be wrong. I am not scared of losses and often embrace 10% pullbacks, in order to buy more. Case in point: I recently sold out of my NFLX position that was worth millions because it was down nearly 10%. Typically at -10%, I make a decision: double down or cut losses. NFLX wasn’t central to my planning, so I sold. But the general principle remains constant: it fell in my boundaries of a big dicked average down. Had I done that, I’d be up 17 points in a week.
I’ll catch the next one.
The point here is this, very simply: ignore the bastards who always tell you to “be safe” and be willing to risk capital instead, especially if you’re young and reckless. Naturally, this advice is tailor made for people with high incomes only. Should you find yourself with 90% of your savings in stocks, living in a housing tenement, fully dependent upon a meager fixed income: ignore this post and go eat some pork roast and cheese.