Investment Plan?

THE LOTTERY

I was watching a lottery commercial on TV and I thought about the mixed messages it was sending to the hard working people watching it. They were showing an older couple riding a touring bike through the mountains and in the background you could hear them describe how they won the lottery. So they were showing how they had the financial freedom to tour the country on a motorbike at 60 years of age only because they won the lottery?

This is actually a sad image to me. All these hard working people that are plugging away and slowly adding to a mutual fund may never have that sense of financial freedom then. If this commercial is right then all we can hope for is to win the lottery. I am glad I invest in my own future. I pick the companies that will carve out my  pension.

The markets can give you an edge that you can probably only find with a lottery win or a casino jackpot. At one point it was the wealthy in society who went around buying stocks and growing with the demand on certain sectors. Now this power is in the hands of so many and of course with power comes greed. Not all men harness this power well and some let it go to their head thinking everything they touch will turn to gold.

Lets look at what a real lottery win on the markets is all about. When you read about a lottery win on the bullboards the person writing is probably describing a company that could align its business plan and be a 10 or even a 100 bagger. In reality though the odds may not be far off from a true lottery. These lottery picks attract small retail investors who want to short cut all the hard work and just get a big winner now. It could happen, but its more than a long shot if you ask me.

The company has to have all the key ingredients for it to succeed otherwise its counting on its own lottery of random selection. There needs to be a solid business plan that outlines where the value and growth will come from. There needs to be a strong management team in place to put the plan in motion and a seasoned CEO to make sure they are always on the right course.If you are a professional driver in a race you need to identify the curve in the road ahead and plan for your move at the apex and at that precise moment you throw on the gas and launch towards the finish line.Can your company do that?

Search for true value and not for over-hyped stories. As we approach 2012 I have started seeing bullboard posters hyping stock using Nostradamus as the theme in an attempt to show the company as a global event. In reality the effect may be catastrophic in nature as well. These guys have merely polished the old "back up the truck" pump that was used in the past. The intent is to bring excitement and more buyers and not to shed light on the story by presenting facts.

With 2012 so close now have a look back a couple of weeks to my watch list. Some key companies have started to hit that curve in the road and the "Apex" is in sight", the next move could be the one that sets the company apart from all of the others you have read about in recent weeks or months. My wild card picks are almost like lottery picks. The risk is high but the reward can be as well. As for the other 10 companies you should have a look at their recent news again as well as their chart. Don't be the person in that commercial waiting for a lottery ticket to get you into a position of financial freedom. As well you need to do your own due diligence on any investment or seek out the advice of an investment professional. My watch list may not fit into your style or level of risk. I don't stick to one sector and I look for a lot of other key indicators when selecting companies to watch.
http://thetradersdigest.blogspot.com/2011/12/what-i-will-be-watching-in-2012.html