Author Archives: davey-wavey

Tips for Stock Market, 401k, etc.

401k investments are investments in the stock market (in case you weren’t aware).
So, these tips apply whether you’re investing in individual stocks, or mutual fund ‘packages’.

  1. It’s not easy!  SERIOUSLY!  It’s not easy!
    a.  Study the S&P500 for quite a while before you invest real money.
    b.  Study the 20, 50 and 100 day moving average trends.
    c.  Make many test predictions about what the market will do next.  If the outcome is different, try to find out why and learn from it – this is extremely important!  If you don’t learn from mistakes, it is extremely likely you will be a careless investor and lose a great deal of money.
    d.  Carefully study the daily price action.  Get a feel for the price action.  You’ll notice sometimes it moves swiftly, sometimes it creeps along sooo slowly.  Understand why.  If you’re short-term trading, slow-trading-price-action can be deadly.  If you’re ‘in’ the market and no one is trading (buying or selling) to ‘support’ the current price, there’s a high likeliness that the price can fall.  Sometimes, it can fall very quickly!
    e.  Some investment accounts let you ‘paper-trade’ to get some practice placing orders to buy & sell.  In ‘paper-trading’ mode, you are issued a certain amount of ‘fake’ money which you can use to buy & sell investments, exactly as if it were real money.  One important difference between paper-trading and real trading is:  When you place an order to buy/sell
    paper-trading, the order gets executed/filled instantly.  When trading real money, a buy order only gets executed/filled when another person is selling at your price.  Same with sell orders, they’ll only execute when another person is willing to buy at your price.  For this reason, it is possible to place an order to sell (when you’re trying to get out of falling price action) and you cannot actually sell because no one is willing to buy (they know the price is falling).  This can be disastrous to your account.
  2. Decide how much you’re willing to lose.
    a.  If you’re willing to lose ZERO, then you should NOT invest in the market. Period.
    b.  If you can decide how much you are willing to lose, you then enable the possibility to grow your money.  Willing to lose doesn’t mean you WILL throw it away or lose it, but it is an amount you have carefully decided you are willing to risk, in order to enable the possibility to grow your money.  There is no way to invest in the market and not risk the possibility of losing.
  3. Study the market you want to invest in.
    1. Study the S&P500 and realize that most stocks move with the same flow as the S&P.  It would be wise to study the S&P500 for quite a while before you invest in individual investments.
    2. Study the individual stock or mutual fund package you’re interested in investing.  At the same time, compare it to the S&P500 to notice how the individual stock moves sympathetically (or not) with the S&P500.  This is important.
  4. NEVER ignore or forget about your investments!
  5. The market can be unpredictable.
    a.  You may find many reasons to back up your prediction for the direction of an investment, and it can sometimes defy all logic!  You must accept that sometimes reasons beyond your knowledge may influence an investment.  Being aware of this ‘against-all-logic’ factor, you must always prepare for the possibility.
    b.  It is extremely difficult to invest in 
  6. Factors that can influence an investment’s direction.
    a.  Overall market influence.  If the overall market is trending good/bad there usually is a sympathetic influence on most other investments.
    b.  Financial Sector influence.  Similar to overall market influence, but Financial Sector specific.
    c.  Earnings performance/announcements.  A company announces past earnings, along with  a prediction of their future earnings.  An investment can understandably nosedive after announcing good earning along with a poor outlook for future earnings.
    b.  Leadership changes.  Replace a poorly performing CEO, can often have a positive influence on an investment.  Losing a seemingly respected CEO, can have a negative influence.  These are only 2 examples, but there can be many.
    c.  Structural changes – businesses merging or splitting.
    d.  Price adjustments – stock splits (both ways).
    e.  Float adjustments – adding or subtracting shares open to the public.
  7. xyz
  8. Pre-tax investments vs. Post-tax investments.
  9. Psychology

 

Laos – Luang Prabang Day 2


Our second full day in Luang Prabang. We’re ready for some more adventure! Today we’re going to Ban Pak Ou to see the Tam Ting Caves. We took a slow boat ride about 30km North on the Mekong River. Did I mention it was slow? Very slow and a little bit chilly we had to use a blanket. Very nice scenery along the way, but after a while we took a nap. It took about 2hrs to get there. Once we arrived, we climbed up many stairs to see the Tam Ting Shrines and caves. Very interesting and beautiful to see. Many parts were nearly pitch dark and we could’ve really used a flash light. But we managed to walk through using the light on our iPhones :) When I saw something interesting, like a shrine, I would take 2 photos with the flash camera. First photo to see what was there with the flash, and second photo to frame the shot better. When we left the caves, looking across the Mekong River I could see elephants walking about.  We would’ve loved to go see them, but we had other plans for the day. When we got back to Luang Prabang, we cleaned up and relaxed at a nice little restaurant right along the riverside and enjoyed a few Beer Laos and watched the sunset. After that we walked around the corner to Sisavangvong Road to explore the night market. We saw many handcrafted goods along the main road, and food markets along the side roads. Another full day of adventure!  We loved it all!

Laos – Luang Prabang Day 1


After arriving in the evening the night before, we woke up refreshed and ready to explore Luang Prabang. Our hotel Luangprabang River Lodge was clean and nice, and served a delicious American-style breakfast every morning which was convenient. We made our way to see so many different temples, the Royal Palace, then onto Kuang Si Waterfall Park. Everything was amazing to see. We also climbed 328 steps up Mount Phousi to That Phousi at the top, where there were beautiful panoramic views in every direction overlooking the city. A lot of walking for one day. We were definitely getting our exercise!

Laos – Phou Khoun and Luang Prabang


After enjoying our stay in Vang Vieng, we made our way North toward Luang Prabang. After driving about 5hrs 15mins North, we took a rest at Phou Khoun, and enjoyed some awesome mountain views. We continued on for another 1hr 15mins, about 7hr total drive, and arrived at Luang Prabang when it was dark. We were so tired from the drive and hungry, we didn’t do much but walk down the night market once and to the locals food alley to find some good food to eat. We were excited to rest up for the next day’s adventures.

Laos – Vang Vieng Day 2

This was our second day in Vang Vieng, Laos. The whole place has a different look with a little early morning fog over everything. Today we went to see the caves and the grounds around them. After some time there, we headed out for the long drive to Luang Prabang. We enjoyed our in Vang Vieng very much. We’d like to go back soon.