New Years Resolution
Research for Online Investors

by John Dalt

12/22/09

We are winding down the work this week in anticipation of Christmas.  The kid in me still gets excited.  We all have sweet memories of childhood and Christmas’s past, so I will not bore you with mine.

Is it too soon to turn our attention to New Year’s Resolutions?  Yes, I am going to lose 20 pounds, but I would like to suggest a course of action for next year that will have lasting implications.  If you are new to managing your investments, slow down.  One of the recurring challenges is to convince new investors to sit on their hands.  It is so attractive to over trade.  We see the market going up, and want to be on-board.  We see red on our screen and want to sell to protect the profit we have, or stop the losses.

One has to learn discipline.  Don’t buy a stock without a clear understanding of why you like it, and a plan on what you expect.  If it goes up 10%, are you going to sell?  What did you plan when you bought it?  What are your expectations?  If it goes down 5%, what are you going to do?  Did you overpay?  Has there been some news that has changed the attractiveness of the company?

May I suggest that you buy a notebook? Write down why you are buying a stock. Is the purchase an investment or a trade? Why do you like it? What do you expect? How long is your window for the expected results? What will you do if the stock goes down? I was given this advice a couple of years ago, and it has helped me understand my motivation and eliminate impulsive decisions. If you are like me, a 99-cent notebook will be the best investment you can make.

I am working on changes to our Long-Term Portfolio for next year.  The mechanics of it, what we expect to deliver, and what subscribers can expect from us.  Everything has to change over time.  Part of this is learning, part is adjusting to changes, and part is to stay fresh with a challenge.

I am also working on a new inclusive service that I think subscribers will really like.  You will hear more about it soon.

OPEC has been in meetings the last two days, and decided to hold output steady until their next meeting in Vienna on March 17  The group's statement referenced cheating on production quotas by some member states, and encouraged producers outside the organization to follow reduced production while the world economy recovers.  USA Today has the story, “OPEC opts to hold output steady.”

I have avoided commenting on the health care debate occurring in the Senate.  This self-restriction is because I don’t know what I could add that you do not already see or hear every day.  I am disgusted/angry at the arrogance of the administration and majority party, but what else is new?  The sense of hopelessness in the situation is overpowering.  To have the government dictating my health care, what I can and cannot do for my family, is such a intrusion into my personal life….  News today is that the Democrats are trying to convince the Republicans to vote early, rather than make them stay in session until Christmas Eve at 7 p.m.

The Republicans will probably give in, out of selfish interests or to ‘just get along’.  My thoughts run to patriots that gave it their all, did they quit in the middle of the fight?  Did Washington decide to fold the Continental Army because it was cold and the men had no shoes?  Did the men of D-Day protest to put off the invasion for a few days because the weather was bad?  It only takes one or two Republicans to abandon the fight, and they will fold like cheap folding chairs.  Why not make every one come out for a nice Christmas Eve vote?  Let America see what the democrats are doing, the republicans can stand outside and sing Christmas Carols.

To me it is coming down to being Patriots.  The games are over.  The administration and congress have declared war on the middle class.  It seems we are merely pawns to move around on their chessboard, into the square they want to put us in.  It disgusts me.

Who is the guy that refuses to put his hand over his heart?

I hope the Senators and Congressmen are scolded like bad step-children over the break, and removed from office next November.  Other hopes I have are less charitable.

The information presented in this newsletter is based on generally available news releases, corporate filings, current events, interviews and the editor’s opinions.  It may contain errors and you should not make investment decisions based solely on what you believe you have read here.  Do your own research, it is your money.  If you lose it, it is your responsibility, not ours or your grandmothers!  The editor may or may not have a position in any securities discussed.  The editor may have held a position in a security earlier, or in the future.

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