Hi all, I wanted to let you know (it's a little late, I'm sorry) that I'm letting the domain, Your Money Is Your Life, expire. I used it as a test bed for generating eBook ideas and for telling you my progress on various projects.
I intended to run this experiment for 1 year and that year has passed. I cannot say that I made much progress. I did begin a project but I never finished.
However, I intend to re-start the project now over at Money Hacks. There, you can get the latest updates to Stock Investing Basics as well as up-to-date information and articles about personal finance, investing, saving, and all sorts of other money matters.
Please take a moment and bookmark Money Hacks and change your feedreaders to http://feeds2.feedburner.com/moneyhacks.
I appreciate your continued support and for letting me run this little experiment.
Want this delivered to your inbox? Subscribe to my feed.
I'm really digging Open Office. It's slow, but powerful. Once the application is launched, it works pretty well.
I was having issues with hyperlinking, but I've got those figured out.
One of the nicest features of Open Office is the built-in PDW export feature. It's not only great for outputting a PDF file (just like Adobe's Acrobat, only $$$$ less as in FREE), but it preserves any hyperlinks you have.
Yes, clickable hyperlinks in your PDF ebooks! That is too cool.
I am looking for an ebook cover creator. Free would be best, but it has to work and produce beautiful results, so I'd consider dropping some money if it really worked well.
I've seen this - E-Cover Creator - and it looks promising, but it costs $27 and I'm wondering if there's anything out there as good, if not better, than this for less (as in free)?
I'd like to put a pretty face on the package when it's complete. Of course, I would like to be able to replicate the cover making with other products that I develop.
Want this delivered to your inbox? Subscribe to my feed.
One of the free traffic sources I use in Entrecard. I really like the "barter" network there and I've found some really good blogs, as well as having a pretty good exposure to new and varied audiences through their advertising platform.
Plus, did I mention, it's FREE?
Well, I just encountered a bump in the road with Entrecard's policies, one of which is your blog has to remail "current."
Totally my fault, of course. I haven't been updating this site because it was created primarily to complement the creation of my free ebook, Stock Investing Basics, and I just haven't had the ambition to finish it due to the underwhelming performance of the stock market.
So, when my account was deleted, I fired off an email, saying, basically, that while it's your policy, it would be really cool - and easy - if you could just send a reminder before you just cut me off at the knees.
And, oh, by the way, the currency of Entrecard, "credits," disappear.
I was more than a little perturbed. I never expected anything to come of my email.
But, something did come out of it. I got in touch with a really nice fella there named Matt, who is doing all he can to get me back to where I was.
I REALLY appreciate that!!!
It seems that nowadays, customer service has gone out the window, or to India, and I'm always pleasantly surprised when customer service actually embodies the values companies purport to have.
In this case, Entrecard made a bad customer experience into a good one. One of the conditions of getting my account restored is that I write 5 new posts. This is number 4.
Next post, rapid fire from here, will get me back on the Entrecard saddle.
Lesson to be learned here - read the Terms and Conditions or Terms of Service. It's YOUR fault if you don't follow them.
Want this delivered to your inbox? Subscribe to my feed.
Okay, I'll admit it, with the crummy economy and cruddy stock market that goes with it, I haven't had the heart or desire to work on Stock Investing Basics.
But I feel - or least hear - change in the air. Is it Phil Collins? Or is it Barack Obama?
Time will tell. And in time, I'll complete the book and start giving away a finished product.
Thanks for your patience!!!
Want this delivered to your inbox? Subscribe to my feed.
Now, I'm not talking about suffering from debilitating disease where you spend all your money, sell your assets, etc. to pay the medical bills, only to lose your job and its income...that would be a real hardship!
But what if you made a colossal mistake and lost everything?
What would you do?
Want this delivered to your inbox? Subscribe to my feed.
It's like he took some basic econ in his college coursework! Now, if only members of Congress actually lived in the real economy, we'd get something done.
Don't forget that the economy back in the '30s actually had a few false starts, then spiraled down deeper than the last cycle. It could happen here, though I think there are other factors at play this time around.
Bottom line: If Consumer spending and Investment are down, Government spending must go up a concomitant amount just for zero growth.
Republicans: Read that last sentence twice, starting at Bottom line!
Want this delivered to your inbox? Subscribe to my feed.
Chapter 7
Portfolio Basics
Remember Axiom #7? The one about putting all of your eggs in one basket? Yeah, that one. If you want to minimize your risk while maximizing your return (optimizing your risk/reward ratio), you'll want to diversify. Diversifying your portfolio takes out a lot of the risk without significantly affecting your reward.
To diversify means to spread your portfolio out into more than one or 5 stocks. 7-10 is a good number. You can certainly over-diversify, too, by investing in too many individual stocks. You also suffer because the more stocks you own, the harder it is to keep track of them and do your homework.
An easy way to diversify is to buy a mutual fund. The fund management team has already done some of the homework and has chosen dozens, if not hundreds, of stocks, taking a lot of the risk out. Don't think that you've diversified simply because you own a mutual fund or two (or ten). Many mutual funds are heavily weighted in one sector or another (or a country). For example, many mutual funds were heavy in technology stocks in 2001, and we all know what happened there!
Such non-diversity really ate into a lot of people's portfolios.
People who run their own businesses could be thought of as ultimately putting all of their investment eggs in one basket. But there is a difference. To say that you've put all of your eggs in one basket is a definite understatement. That business is your livelihood and you really have a vested interest in keeping it afloat and growing. However, we're talking about investing your extra dollars here, not building a business. So, take it from me: Own at least 7 stocks or a well-diversified set of mutual funds.
Want this delivered to your inbox? Subscribe to my feed.
