A man without a goal is like a ship without a rudder. Thomas Carlyle
It looks like the US Equity markets are treading water until after the Inauguration. Here is the chart I for next Monday. Note which indexes are testing the 30 SMA.
In this new series, we begin the “Garden Growing” application process. I plan to detail a step-by-step approach for when the next correction and retracement happens.
Step 1: Go to the “Members Vault” and download the editable version of the “Rules of the Road.” Complete in full for each account. This report details the rule options to reach your financial goals.
I designed the document so you can see many important points. It is a lot easier to edit than to compose, so I have furnished this document for your review and application.
Each option is highlighted. Simply complete then delete the highlight.
Once completed, make a copy and put in each account file folder for occasional review.
Here is a sample of the first part of the document.
Portfolio-Rules of the Road
Investing/Trading Account(s) Policy Statement
This document is Editable-adjust/select which options apply-delete what is not needed.
1. Per account, my goal is Capital preservation, Garden Growing or Trading?
2. If Garden Growing, dividends must be reinvested or received as cash?
3. If Dividends are received as cash, where will it be held? If held in a Money Market Fund, is it insured? Have you confirmed this in writing with your broker?
Garden Growing/Trading Rules
1. No more than X%, 5% or 10% allocation per Fund/Security-per account.
2. When taking on a new position, Incremental buying/profit taking is optional or mandatory?
3. I will enter with a 25%, 33.3%, 50% or a 100% position? Using Incremental buying, if and only if the security is hitting my objectives, I will add another 25%, 33.3% or 50% position.
The version is for 2016. An updated version will be finalized and available next week.
QUIZ: Can you spot what question is missing? The first person to identify what is missing receives an additional week of EOM membership. I need your answer no later than 10 AM CST tomorrow.
To help with the process, tomorrow I feature a completed “Rules of the Road” for one of my IRA (Garden Growing) accounts.
Enjoy your evening!
David O. England
Plan your work, work your plan, and share your harvest! 1 Timothy 2:1-2
This information is for Educational purposes only. It shall in no event be construed or interpreted as an offer or recommendation to buy or sell securities of any kind.
DAVID O. ENGLAND is the founder of the Eye on the Market-Training Academy and Associate Professor Emeritus of Finance.
This column is presented for educational purposes only and not intended as financial advice.If you have a question or comment, contact David England at firstname.lastname@example.org.