This is what I got from Jim Cramer’s recent book called GET RICH CAREFULLY – a book Steve got me at the library, thinking I might be interested.
You can change the market without having to know anything about the status of the companies you’re betting on. That was the gist of it.
When I grasped that concept I didn’t need to read any further. I found what I didn’t know I was looking for. I was only thirty or so pages into the book. A few days later Steve, going to the library, asks if I want that Cramer book. I said no, I don’t need it anymore. I don’t want it anymore. He writes like he talks – too much detail.
Subsequently, I read a bunch of stuff on the site where I can change the distribution of my total investment. I can pull a percentage or the total amount from one category and add it to an existing investment or find a different one.
I decided to go for it – change the distribution of my investment, rather than let the company do it for me. But what if I didn’t know what I was doing and lost the little money we had? Cramer implied that it didn’t matter.
Well, we had already lost a sizable percentage. So what do I do? Go with my gut? Do a process of elimination absent any knowledge? I don’t even know what these things are. Do I go with what sounds familiar – so that because I understand the word energy I should invest in that?
I obviously need to learn the meaning of the terms used in finance.
I decided not to gamble, but to go by the numbers. If you lost me money, you’re out. I had to nuance the rest, because there were so many of them that lost me money.
I made the correction only once.
In a little more than one month I recouped my losses plus a little bit more. Not bad for my first try ever. Wow.
Now I decide to take Mrs. Jill’s advice to my mother-in-law many, many years ago. Put your money in the market and forget about it. Well, I’ll partially take her advice. I’ll wait a few months – don’t know how many though. I want to ride the ripple effect for a while – see what happens. The effect on my investment will be small. But for others, who invest more, it will be much bigger.
I’m on the board. Beginner’s luck?
I have never, ever experienced beginner’s luck.
I don’t have any luck at all.
When I gamble, I gamble to win, not to keep on gambling.
Most people I know who gamble, gamble to keep on gambling – so they can spread the play over several hours.
That’s not me. I don’t think of a gamble as a game or as entertainment. It’s work. Losing money is not my idea of a good time.
On the rare occasion that Steve and I would go to a casino, we’d both get fifty dollars. He’d lose his within five minutes, then come over to me and stand behind me at a machine. Now Steve is a self-proclaimed ‘cooler’. Do I want a ‘cooler’ standing behind me watching me as I’m working on increasing my investment? No.
So, I’d tell him to wait for me in the car. Fifteen minutes later I’d get into the car with a poker face, make him wonder for about thirty seconds, then give him his fifty dollars back and pocket my remaining two hundred and fifty win – two hundred net. Huge smile from Steve! We’d go out to dinner and I’d pay a bill.
After each instance, he always said the same thing. HOW do you do that??
My response was always the same. I know when to stop.
Oh, and something else: If I don’t think I’m going to win going in, I don’t gamble. I’ve been to the casino downtown Cleveland several times. I haven’t yet placed a bet.