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Tuesday, October 20, 2009

Investment Series: Infer Bias - Scaling Down and Up (VIDEO)

"There are no creeds in mathematics." - Peter F. Drucker

This video is part of a series I have entitled the "Investment Series"

Here is a list of the various entries in this series.

1) The Introduction to this series. It's just that. The introduction to the series overall. On this blog, I have a lot to say about trading, and trading for a living. This series purpose is to discuss investing, not trading.

2) Buy and Hold is not dead. It's something that's been bandied about in this economic downturn. I examine that line of reasoning in this entry.

3) The "Dogs of the DOW" approach. This is the kernel of my investment philosophy.

4) Investing Vs. Trading. I discuss the exact differences between investing and trading.

5) The importance of dividends. I am a dividend investor. I begin to examine dividends in this entry.

6) What Sort of Dividends?. I discuss the nature and type of dividends that I search for, as a dividend investor.

7) DRIP or Dividend ReInvestment Plans. DRIP's allow your dividends to begin to compound the returns on a single purchase.

8) Infering Bias - By Seasonal Factors. There are particular times of the year, that you may want to think about buying dividend stocks; so as to get the best price.

9) Infering Bias - by Dollar Cost Averaging. What is Dollar Cost Averaging, and how can it assist you to obtain a stock at a better price?

Today, I want to talk about the actual purchase of a stock, and how to slowly slide in, or scale into an investment position, when you are unsure of future market movements ...

(Video Included. If you're seeing this entry elsewhere and cannot see the Video? Click here to view the entry ...)

Always, have excess cash after the purchase to better dollar cost average the position.

The next entry in this series will talk further on this idea, and discuss how to defend yourself against the very real risks of investing.

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Note: This is not an investment or trading recommendation. The losses in trading can be very real, and depending on the investment vehicle, can exceed your initial investment. I am not a licensed trading or investment adviser, or financial planner. But I do have 13 years of experience in trading and investing in these markets. The Challenge accounts are run for the education of other traders who should make their own decisions based off their own research, and tolerance for risk.

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