Friday, July 21, 2006


Weekly Summary: Down but not out

Well, no surprise, I got my ass kicked today. For the week, my portfolio declined 1.5 percent, underperforming the S&P 500 (up 0.3 percent), the NASDAQ (down 0.8 percent), and the Russell 2000 (down 1.4 percent).

There's an old adage that says "what doesn't kill you can only make you stronger". I'm taking this little proverb to heart in relation to my less than successful foray into the mid-cap and large-cap areas of the market. It took me several years before I could successfully trade small cap stocks. Honestly, much of the lessons earned can't be written down on paper. It's more of a gut feeling that one develops from years of experience that tells you which stock to pick, and when to get in and out. Obviously, some of the lessons that I learned can be applied to the large cap realm, but my no means all of them. There are some critical differences, and I have become much more attuned to them. In the past two weeks, I've had the chance to see these stocks move in relation to my expectations. While I've lost money in the process, I've also gained valuable lessons, and I think these lessons will begin to pay big dividends down the road. I'm excited about the future, and I think my portfolio will begin to show it.

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