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You have to survive

You have to survive
Every day is a battle, survival is rule #1

Monday, June 20, 2016

Financial Farmer

Lately I have been thinking about how I like to enter fairly long trades which may last a few years or so.  To me it is like growing trees.  I plant a seed or branch and wait.  I may water and nourish it for a while to get it going but at some point it will look like it is growing well.  This is like the period when Im buying low.  Eventually i may dig it up and sell the whole tree but if I have several trees growing they will be sold at different times.  This is like me having several trades going.  That is basically my diversification and it would create a fairly stable capital gain income. I want to plant a row of trees and eventually I will expect to sell a different one each year.  Right now I only have two trades going but I may enter a third trade next year depending on if China starts moving up.  If China does go up overall, then I will stop buying DFEMX and just wait to sell it.  At that time I could buy something else that is down.  I have heard of a trader comparing their style to being a farmer.  I am not sure if it exactly how I am looking at it.  Over time I will look forward to adding more and more trades.  I should get to the point where I am always about to enter something new and exit something old.  I am not there yet.  I am still just buying more and more of one thing until I am forced to buy something else.  That probably won't happen again.  I have two trees on my farm.  My choice of seeds are limited but I may look into opening a Traditional IRA if it would let me buy a better variety of seeds/industries.  I will worry about that a little later.  It will be a nice problem to have.

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