Risk versus reward

Let's say one share costs $50. Despite all that causes turmoil in today's investing marketplace, we irrationally yet optimistically hope to realize a gain of 20% over the year. $10. In a year.


Realistically, we have no way to know if our investment will grow from $50 to $60 a share by next year. But, we could use that $10 as a goal. Ten bucks. 1,000 cents.


Since there are roughly 250 trading sessions in the year, we need to make 4 cents a day.


4.


So, before the start of every day, determine how many cents of gain per share would be reasonable. Don't think home runs, think small ball - constant simple advances.

Leaping forward while drifting sideways

For more than 3 years, I have worked to solve the puzzle of growing savings while the traditional investment instruments have struggled against a deteriorating climate. 


Over time, I will share my thoughts in this space. Make of them what you will.

Perspectives

We are better at this than we used to be.