Wednesday, May 6, 2009

Finance @ A Glance: The Stock Game(Plan)

**In an ongoing weekly series, The Ant & Mike Show brings you the financial perspective of esteemed financial and accounting analyst, Ernest R. Fair. The Ant & Mike Show is going to help get you through this recession! **

The Dow finished down for last week at 8076 pts. Monday (4/25) saw losses close to 300 pts and by Friday the market almost recovered all its losses. The Dow finished the week down, but I closed the week up. (I’m Boomin’. I’m Boomin’…) Excuse me. My LVS gained some ground this week and my CME missed earning estimates by a few cents, but I was able to double down on both and got that pop that I was looking for. So I made a good percentage gain on Thursday and Friday. If I can grab a hold of a few more dollars, my brokerage account will be funded at record levels (for me).

Remember that you have to play the hand that is dealt to you. So for me I made about eight hundred dollars in two days and I am excited about that. But for someone else that’s trash and for another that’s treasury. I learned that lesson at the casino last month. (I’ll try to make this short.) I was at the casino and I finally get a machine that is going good. A lady sits on my right and she hits the machine for around $500. So I move over 2 seats to a machine just like hers (so now I’m sitting on her left side). And I try mimic how she was playing the machine she had. She gets up after wining, leaves for 10 minutes, and then comes back (moves 2 seats over) and sits on my right side again. And the she hits on that machine for $250. Meanwhile, I’m trying to mimic her, and I spend every free cent I got in the world on this middle machine with no luck. I leave broke and busted and spent the same amount of money in 2 hours that normally would have taken me 2 days to lose in the casino.

I said that to say, if you have a good game plan; then play your game. So if you want to get into stocks, the best advice that I can give you (out of my playbook) is that you only have to be right once. Meaning that you goal should be to find one stock that you would rather own over all other stock in the market at a certain price. For example, currently, if I could only pick one stock it would be CME below $330. I will stop buying CME once it gets above $330 because I don’t think it is a bargain above that price. So any other stocks that I am buying other than CME are purely speculative positions. (Which means that you should not invest more than you are comfortable losing if the stock goes to $0.)

If you have any specific questions leave me a comment!

-E.R.Fair

Ernest R. Fair (M.S., B.A.) is a successful financial analyst, seasoned accountant and burgeoning author. As Fair prepares for the release of his debut financial self help guide, he will be sharing his insights with The Ant & Mike Show readers. Be sure to comment and if you want to reach out to Ernest with a detailed question, contact him at ernest@theantandmikeshow.com

3 comments:

  1. RIcky, I recently started a new job and am interested in investing some of my money. However, I have no idea how to go about it. What should I do? I just wanna start out small.

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  2. What's up (is this Spencer). I will comment on this next week. but the first thing you need to do is open a tdameritrade account right away. you need just the regular account not any special account.
    - E.fair

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  3. Sometimes, I realize that the love of money is the root of all evil..But through the usefulness of money, we are still evolving and surviving even in the midst of crisis. Having a wise investment for the money is very important.

    Just like Mr. Scheinfeld's newly released book called "Busting Loose From The Business Game." It takes the topic of discussion into a very different place, especially as it relates to money, business and career.

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