5 Ways to Increase your Portfolio Value (Page 2)

 

DOH 401K3. 401(k) to IRA
Anytime you get the opportunity roll your 401(k) holdings into an IRA.  Better yet a ROTH IRA.  You only get the chance to do a rollover to an IRA when you leave your employer and have to do something with that old 401(k).  You as an investors can be a much better driver of your retirement funds with and IRA or ROTH IRA.  Which is better?  Here is a helpful site to determine which is better for you, IRA or ROTH IRA.

Regardless of your decision, and IRA allows you the freedom to select whatever type of stocks, bonds, ETFs, etc. you want.  Of course if you are a novice investor it can be a burdening decision and many people make the wrong choices.  However you are in control, you can choose to risk your money as you see fit.  The issue with 401(k)s is you are limited to whatever funds your company allows to invest in.  Many of these are managed by people that barely have an incentive to bank a decent return on the fund.

Mutal funds are a joke.  A tech mutual fund may claim Apple (AAPL) as one of its top holdings, but a rally in Apple shares may barely move the mutual fund, on account of Apple only comprising 2% of the overall portfolio, and the remaining 98% being comprised of industry laggards such as Microsoft (MSFT).  Being in control of your money is the ideal way to go.  You have that opportunity when you leave your job with a 401(K) to roll that money to an IRA or ROTH IRA and swing for the fences.  On your own.

 

4. Timing is Everything

bullet time neo

Neo: What are you trying to tell me, that I can dodge bullets?
Morpheus: No, Neo. I'm trying to tell you that when you're ready, you won't have to.

If only we were that fast, but we aren't.  Perhaps the high frequency trading robots are?  None the less, like 99% of global investors we do not have access to HFT algorithms and computers.  We are stuck in the land of the real, and have to make decisions based on the information and data that we have.  We do not have IBM's (IBM) Watson to help us, at least not yet.  Thus when when we make a trade it has got to be precise to be profitable.  There are hundreds of methods for trading securities to generate a profit.  Learn as many as you can.  You can't download and know Kung-Fu in seconds, but you can spend weeks and months learning new investing and trading techniques.  This will help you become knowledgeable and know when to trade a given stock and determine which direction it is heading.  Has the stock become undervalued?  Was the earnings call as bad as the media is painting the picture to be? Is there an analyst that shares your opinion on a given security, does Wall Street have it wrong? 

Back in 2008 and 2009 when stocks bottomed after erasing trillions from investors pensions, 401(k)s and individual portfolios it was the sale of the century.  If you were cash and bought up anything you made money.  Simply put -- timing is everything.


5. Keep your Cool
In a post Lehman Brothers world (ever since 2008) equities have never traded the same.  The internets age when news and rumors are hitting the world wide web two seconds after they occur has impacted our securities in a major way.  Volatility is alive and well.  What happens in Greece impacts our stocks.  If the EU sneezes it bounces our stocks.  We are in a global trading environment and at the mercy of how the media reports the events to us.  Thus if you are holding a security and find it victim to events unseen, keep your cool.

Cool Hand Luke - Big Pic

"What we've got here is (a) failure to communicate"

The market giveth and taketh away.  Its important to have a stop-loss limit on your securities. You can't hold a stock forever and continue to bleed money.  However its important to filter through the noise and stick to your convictions.  When Google (GOOG) fell back the $200 level four years ago it was a gift to us all.  Did anyone think the company that changed the way we use internet would not make a comeback?

Emotions cannot be involved with trading stocks.  2 + 2 = 4.  Its not 2 upset women + 2 unconfident men = 6 bitches.  Keep to your analysis, thesis for your trade, and most of all the price target.

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