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Hyperlinks are shown in red
Weekly Newsletters
Discover
The Amazing Power Of Point & Figure Charting
Essays in
Positive Portfolio Management
These essays are sent out weekly and they cover various
aspects of investing and portfolio management - Click on a red link to view
the essay - the essay is in pdf format - be sure to read the
"Manage the portfolio like a business" essay that follows the list of
weekly essays.
Market Dynamics letter for 05-11-07 -
Why
Follow A Trend?
Market Dynamics letter for 05-04-07 -
Hypothesis Testing
Market Dynamics letter for 04-13-07 -
The
Inner Circle
Market Dynamics letter for 01-05-07 -
TANSTAAFL
You can subscribe to these free weekly discussions by sending an e-mail to clayallen@msn.com with "subscribe to weekly
letters" in the subject line
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.
A weekly newsletter is sent out to
subscribers by e-mail each week. This is in the form of a one page essay and I cover
topics of interest to investors regarding relative strength, point and figure charting
techniques, portfolio management topics and sometimes I share stories from my experience
in the investment management business. These letters sometimes range into the psychology
of investing and common mistakes that are made by investors. The field of investment
management has intrigued me for years and I have collected numerous examples of investor
behaviors that are very revealing in terms of human behavior and the stock market.
Overall, I write these short reports to share my experiences in the market and what
I have learned about successful investing - of course, P&F charting is a very large
part of this effort.
Several examples of recent discussions of
portfolio management are available for viewing and/or download.. These weekly essays are
in Adobe Acrobat format so you may need to download the Acrobat Viewer from www.adobe.com. I have been writing these weekly letters
for almost two years and a complete set of weekly essays is included on the software CD
that comes with the free trial subscription.
Just click on a link to view the letter.
These .pdf reports can be saved, printed or attached to an e-mail and sent to a friend or
colleague.

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