As a small retail investor it is important to take a patient and disciplined approach to your money. You have to attempt to maximize your ability to buy low and sell high.
In this spirit you have to watch out for getting caught up in market momentum. It truly is a lot of fun to watch as the market hits new highs and want to throw more money into it. However, that is the time to be disciplined.
You must realize that if the market is hitting records then prices are high. Experience has taught me that is the time to enjoy what I’m seeing but also to put new money into cash. I do that because at some point there will be down days, some of them big, where I’ll have a better entry point to maximize the power of my dollars.
Therefore, don’t automatically move with the herd. Know that there will be many many more lucrative entry points to buy things that you have been following than on days when the market is at record levels. That is when you want to be ready with available cash.
On another note, if you are looking for a gift for the young reader in your life, you can find some great children’s books on Amazon. Just go to these links The Desert Fairies of Oylara, The Rainforest Fairies of Oylara, and The Artic Fairies of Oylara and order them.
Finally, check out some pretty cool music on YouTube if you have a few minutes: Introduction , Mosh, Smoke, and Watch Out . Enjoy!
Patient and Disciplined Saving 