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Discover The Amazing Power Of Point & Figure Charting
Investing as a Business
You Should Manage The Portfolio Like A Business
Your Stocks are Your Employees
They Have A Job To Do!
You should manage your portfolio as you would manage a business. Your stocks represent your employees. They work for you and only through them can your business accomplish its goals. You must decide what tasks your workers are to perform and it is also up to you to define what constitutes acceptable job performance. It is your responsibility to periodically review the job performance of your workers against the standards of performance that you have defined. When their performance on the job becomes unacceptable - it is your responsibility to fire that employee and replace him/her with a worker who is judged to be more capable of getting the job done. If you do not upgrade your work force then the goals of the business will not be met and you might even be forced out of business. Firing workers is not pleasant but it has to be done or the business could fail. This activity does not require predicting the future but only the measurement of actual job performance. Poor job performance is not to be tolerated and since there is always a reason for poor job performance - the simple fact of unacceptable job performance is grounds for dismissal. In this way the portfolio can be kept fresh and the performance can be managed in a businesslike manner.
Poor portfolio performance is simply a result of holding too many poorly performing stocks for too long. Each investor is free to define his/her own standards of performance. But if performance standards are not established, the substandard performance of some stocks will drag the overall portfolio down. It is not a complicated process but it does require discipline and a willingness to act. It also requires a system to monitor and measure the performance of each stock. The Market Dynamics computer software provides just such a performance management system. Market Dynamics provides the essential feedback that allows an investor to quickly and effective evaluate the investment performance of each stock in the portfolio.
