I love the real life examples that he gives throughout the book, and includes both small (as small as one person) and large organizations. Chapter 8 is probably the most important one, describing how to implement his advice. Each step is broken down into easily understandable and implementable sub-steps. At the end of the book is a helpful self-assessment which allows you to determine how networked your organization is.

If you are involved with a business or even a non-profit organization, and your organizational networking could use come improvement, then I highly recommend The Network Is Your Customer.

This interview was originally published on December 17, 2010 at thekirkreport.com

Charles Kirk: It is with tremendous pleasure that I offer my last interview of 2010 with Mark Minervini.

As with many traders I interview, Mark requires no introduction as he is one of the most highly-respected independent traders of our generation. His blog in recent years has instantly become one of the must reads out there as he often shares market commentary and analysis which shows why the respect so many have for Mark is so well-deserved.

Moreover, his experience and past history of savvy market calls is legendary. It is with little doubt that we can all learn a lot from him! We hope you enjoy and find this focus interview helpful in your own journey toward more success in the markets.

Kirk: Hi, Mark. First of all, thank you for taking the time to answer our questions. I speak for many members who have a great deal of respect for you and we sincerely welcome you to this interview series.

Mark Minervini: You do a great job, Charles, and Im honored to be a part of it.

Kirk: Please tell us a little bit about how you got interested and started in trading.

Mark Minervini: I dropped out of school in the eighth grade in pursuit of a career as a drummer. From the money I made working as musician, I bought my first stock in 1983, which was a few hundred shares of Allis Chalmer. Shortly after, I read Richard Loves book, Superperformance Stocks: An Investment Strategy for the Individual Investor Based on the 4-Year Political Cycle. Everything Ive created with regard to my trading approach since stems from Loves initial impression on me, specifically from his writings in chapter 7.

Kirk: What was one of the most important lessons you learned early on?

Mark Minervini: That no one was going to do it for me; no one was going to make me rich except me. I learned that you must take responsibility for your results in the market and in life if you want to be exceptional. Secondly, I learned that in order to do well in the market you must be consistent; consistency is what separates the pro form the amateur. In order to have consistent success, risk must be managed in relation to potential reward as standard operating procedure. Youre not going to make just one trade, rather hundreds or even thousands of trades; its all about how much you make on average versus how much you lose on average over time. Lastly, I realized that I simply had to get to the bottom of what actually worked in the marketplace and ignore all the opinions and theories.

Kirk: Was there anyone out there who helped you greatly during your initial learning curve? If so, what did you learn most from them?

Mark Minervini: My Mother and my Father. I learned it was ok to do what I love; to go after my dream. I also learned it was ok to be unconventional. I was given the room to be creative. My parents trusted me. I always knew I was supported emotionally. Financially, we were poor but my parents supported my dreams.

Kirk: Indeed, it is so important to have a strong support structure in place. In a nutshell how do you currently approach the market and what is your primary trading strategy?

Mark Minervini: I approach the market from a risk first approach. My trading strategy is called Specific Entry Point Analysis or SEPA. We look to enter trades at low risk entry points relative to potential reward. Primary focus is not to lose money. Secondary focus is not to lose money. And, the final focus is to make more on average than I lose.

Kirk: You remind me of Buffett who said he had only two rules: 1) Never lose money and 2) see rule number 1! What do you see as the primary benefits from employing a strategy that focuses on both fundamentals and technicals?

Mark Minervini: The benefits are having all the pertinent information that is consistent with big winning stocks. We know what to look for both fundamentally and technically. I have seen stocks bought on pure technicals and the guy buying the stock doesnt even know that there was a cash offer or a proposed merger right at the price he paid. Refusing to look at fundamentals or any information that gives you an edge is usually because the individual just doesnt know how to use the info, or has some bias based on personal opinion or tradition.

Kirk: Why is this kind of trading best for you and, more importantly, why do you think it works so well?

Mark Minervini: My strategy works well because its my strategy. I know the strengths and, more importantly, the weaknesses of what it is I do. It also works well because I allow it to work and stick with it even when it runs into difficult times. Nothing works well if you keep changing your approach. To be a master you must be a specialist, not a jack of all trades.

Kirk: What do you trade mostly? Equities, options, futures, ETFs, currencies, etc.?

Mark Minervini: Only equities.

Kirk: In an average week how many trades do you make? What is your average hold time and how many positions do you have open at any given time?

Mark Minervini: During an average year I may make 400-500 trades. About half of that turnover is a result of taking small losses, which Im out of pretty quickly.

Kirk: What would you say are your primary strengths and weaknesses as a trader?

Mark Minervini: Discipline is my primary strength. And the willingness to admit when Im wrong and move on. My weakness is I usually sell early and often leave money on the table. But I dont really view that as a weakness, just something that could be improved upon. When you move in size you have to get out when the getting is good.

Kirk: In my experience it is often better to sell too early than too late Mark! How have you learned to mitigate your weaknesses and focus more on your strengths?

Mark Minervini: By not focusing too much on my strengths. If youre good at buying and bad at selling I would focus on selling; if you improve your selling you will have a complete game. Focus on making your weaknesses strengths and then you will have no weaknesses. Exploit your strengths and improve your weaknesses.

Kirk: What have been some of the most challenging lessons you have learned?

Mark Minervini: That you cant be everything. You must commit to a strategy and sacrifice other strategies. The problem with the market is its like playing poker however; you always get to see the next cards even though the hand is over. You always see what would have happened. This is very difficult to deal with for many people. To be successful, you have to understand that trading is NOT about picking highs and lows, its about making money.

Kirk: Very good. What are some of the key rules that you consider before selecting any potential trading opportunity?

Mark Minervini: How much am I risking is the very first concern. Also, does the stock meet all the necessary criteria? If the risk is acceptable and all the entry criteria are met, I enter the trade.

Kirk: What would you say is your average win: loss ratio for your trades?

Mark Minervini: I average 2 to 1.

Kirk: How has your overall performance been recently, as well as over the past few years?

Mark Minervini: Its been about the same as always. Im a consistent 2:1 trader.

Kirk: What would you say are your favorite kinds of technical and fundamental set-ups?

Mark Minervini: The ideal set-up is a stock emerging from a constructive consolidation with strong accelerating earnings and sales.

Kirk: Can you give us a recent example of a set-up you found to be very attractive and worked well in this market?

Mark Minervini: CML. Bought it on 11/24. Sold it on 12/7 for a quick profit.

Kirk: Have you noticed any trading set-ups more prone to failure than they have been in the past?

Mark Minervini: No. Not much has changed. Contrary to what many believe, its not different this time. LOL

Kirk: To help us understand your trading approach, can you talk about a recent successful trade from start to finish?

Mark Minervini: LULU. Supported by excellent fundamentals, the stock emerged from a double bottom pattern that formed from 4/15 11/04. I bought the stock on 11/05 the day the market topped just before a pullback of about 5% in the major averages. The stock was held through that market pullback because it acted normal and held above our stop. This gave me the conviction to add to the position as it emerged through its next buy point in November. I sold the stock (most likely too early) on 12/09 when they reported earnings up about +50% from the initial purchase from about a month earlier.

Kirk: Now please tell us about a recent unsuccessful trade.

Mark Minervini: Shorted GMCR; shorted the rally in October and November after the big break on SEC news. Stock rallied and stopped us out

Kirk: One of the things I most appreciate about you is how much you stress proper risk management. If we can, lets talk a little bit about position sizing. Can you provide an example of a recent trade and explain your method for determining the size relative to your own trading portfolio?

Mark Minervini: I want to own as much as I can but generally no more than 25% of my portfolio (as liquidity permits). You are not going to make huge returns being too diversified. However, I only risk what I can get out of safely based on liquidity.

Kirk: Thats interesting. I think many would be surprised at the idea of having any position anywhere near 25% of an entire portfolio. Besides over diversification and liquidity concerns, what common mistakes do you think many traders make concerning position sizing?

Mark Minervini: They dont know what an optimal position size should be based on their own risk/reward and risk tolerance. For instance, if youre a 2:1 trader, your optimal position size is 25%.

Kirk: Ok. I think I understand what you mean, but please explain this position sizing formula more in detail so others can perhaps apply it in their own trading. Can you offer another example?

Mark Minervini: Ok. First, its important to understand that you are not going to achieve huge returns consistently being overly diversified or by relying on diversification for protection. You will only get a smoothing effect. When you own a bunch of stocks you end up with two problems: the first being that you just cant watch and know all you need to know about each of them. The second problem is that you will have a difficult time getting fully invested quickly when opportunity presents itself and more importantly, getting liquid if you need to raise cash in a hurry. In addition, the math just doesnt support it. Depending on the size and risk tolerance of your portfolio you should typically have between 4 or 8 stocks and for large portfolios maybe up to as many as 10 or 12 stocks. This would provide sufficient diversification but not too much. The Optimal-f formula can act as a starting place for you to understand optimal position sizing based on expectation. If Ken Heebner of CGM Funds can move around billions of dollars in just twenty names and still manage to beat the market, then a personal portfolio can surely manage sufficiently with 4-5 or 10-12 stocks. If you lose 5-6% on average and even if your position size is at 25% exposure, youre still only be risking about 1.25% of your capital per trade. Of course, if you dont have an edge, then you will lose no matter what your position sizing is.

Kirk: Good, thats helpful. So, do you use and set stops, Mark? If so, whats your stop loss method?

Mark Minervini: I always know where Im going to get out of a trade before I get in. I aim to lose no more than 5-6% on average over time on my losers.

Kirk: Do you ever average down into a losing trade?

Mark Minervini: Theres a reason Paul Tudor Jones had a sign posted on his wall that read Losers average losers, and that reason is because its true. I almost always only add to a position if it proves itself and then I may add to my position at a higher price, not lower.

Kirk: Do you scale up and into winning positions? If so, how do you know when to increase a position size relative to your overall portfolio?

Mark Minervini: Yes. I generally move money into the better performing names at subsequent pivot points or set-ups.

Kirk: All good traders dedicate a lot of time and effort to improvement and reducing mistakes. How has your trading method evolved and improved over the years?

Mark Minervini: It just becomes more and more crystallized because I continue to focus on the same timeless principles, which allows me to become more and more of a specialist. The power of a narrow focus is amazing. The key is to be a real pro at something. Know all you can about a style or a tactic. Then you can build on that foundation. Traders give up too easily and jump around too much when things get difficult. How good do you think Kobe Bryant would be if while he was developing his skills growing up every time he had a really tough game he changed to a different sport or played a different position?

Kirk: I couldnt agree with you more Mark. I see this problem among many. Can you provide an example of something you thought was true when trading early in your career and now believe is just completely wrong?

Mark Minervini: Yeah, everything. But I learned very quickly sound principles. It just took me many years to master the application.

Kirk: Why do you think most traders fail?

Mark Minervini: Here are 6 reasons:

1. Poor selection criteria; usually based on personal opinion, theory or tips and bad advice
2. They dont stick to and commit to an approach; style drift
3. Dont cut losses (#1 mistake made by virtually all investors)
4. Dont know the truth about their trading they fail to conduct in-depth post analysis
5. Treat trading as a hobby not a business
6. Want too much too fast; learning a skill takes time

Kirk: Please describe a typical trading day for you. How do you organize and dedicate your time?

Mark Minervini: Most of my work is done the night before. I already know what Im going to trade before the open. I watch the market all day long, never leaving my desk for more than a few minutes during trading hours.

Kirk: How much time and attention do you pay to others opinions about the market and/or stocks you are trading?

Mark Minervini: Zero. I avoid outside opinions like the plague!

Kirk: Are there any tricks of the trade that you use to help maintain a consistent successful approach over a long period of time?

Mark Minervini: Yeah, long hours, hard work, a sound approach and discipline. There are no tricks or big secrets. Again, is there a secret to having a good basketball shot? It starts with a good coach, proper practice, plenty of hard work, discipline and sacrifice.

Kirk: Amen. However, most traders I know have a set of rules that they have learned from past mistakes. What are a few of yours that you think most traders would benefit from?

Mark Minervini: Hard work alone wont cut if you dont have a sound approach and if youre not doing the right things. You must be facing west if youre looking for a sun set. Approach each trade from risk first; ask how much can I lose. Dont risk more than you can expect to gain on average. Know the truth about your trading; study your results carefully. Never average down. Always cut your losses; keep your losses small. These are fundamental rules that should never be compromised.

Kirk: I suspect like all good traders you are working on improving your performance in some manner. Can you share what youre specifically working on right now?

Mark Minervini: Sticking to the rules. Always making sure we stick to the rules. We have a great approach, I dont like to get to tricky and over complicate something that requires a straight forward approach.

Kirk: Youve been trading for some time now. What would you say are the biggest changes in the markets and trading in general youve seen during your career, both good and bad?

Mark Minervini: The order handling rule change in 1997 has changed the way stocks move short-term because Market Makers dont really keep inventory anymore. Its a topic that would require a lengthy discussion; maybe we could talk about it another time. Other than that, not much has changed except more information moves faster than before.

Kirk: What advice would you give a person just now beginning to trade the markets?

Mark Minervini: Find a good mentor. Commit to a strategy. Cut your losses. Tune out the media. Take full responsibility for your results.
Kirk: What do you think are the greatest misconceptions beginning traders have about trading the markets and about trading systems?

Mark Minervini: Way too many to mention. Just about everything a beginner thinks is a misconception.

Kirk: A number of people who read my website desire to trade for a living and I receive a lot of questions concerning capital requirements needed to start and how to make the transition to trade full-time. Do you have any words of wisdom or rules of thumb to share along these lines?

Mark Minervini: I started with a very small sum of money and turned it into a fortune. Capital is not the challenge. Mastering yourself is the challenge. Discipline is the challenge. Persistence is the challenge.

Kirk: Do you think trading for a living is getting more difficult or easier for the average individual investor? Why?

Mark Minervini: Much easier. Tools for pros and amateurs are virtually identical. The pro has no edge. The individual has the advantage. No real liquidity concerns for the small trader versus the big fund manager. Its a fantastic time to be a stock trader!

Kirk: When all is said and done, in your experience, what is the best way to learn how to trade?

Mark Minervini: Trade. As Ralph Waldo Emerson said: Do the thing and you shall have the power. And then conduct post analysis. Learn to be objective. You could try and find a mentor. However, the chances of getting great advice are slim at best. Trading is just like any other profession, there are only a handful of really outstanding practitioners.

Kirk: Do you have any books, websites, etc. that you highly recommend beyond your own website?

Mark Minervini: The Kirk Report. Why is there anything else? LOL!!!

Kirk: You are too kind Mark. Although I know both of us share a love for the markets and trading, what are your long-term career plans and future for your website?

Mark Minervini: I honestly dont know for sure. My long-term plans are too stay healthy and be a good father to my daughter. This past year I started a pilot training program. Also, we now offer my research to the individual investor not just exclusively to the institution anymore. It feels good to help others achieve their goals. I think I may continue to develop that. Why hog all the good trades for myself? LOL!

Kirk: What are some of your personal passions beyond the market?

Mark Minervini: Ive been a drummer since I was 6 years old and I continue to play. I play tennis, train boxing and lift weights to stay in shape, and I play an occasional round of golf.

Kirk: Finally, if you had only one piece of advice to share with all traders, what would it be?

Mark Minervini: Believe in yourself and never give up. Persistence is more important than knowledge. Make an unconditional commitment to trading and you will not fail.

Kirk: Thank you so much Mark. I really enjoyed this interview and Im sure others will find it helpful.

Mattel Inc. (MAT) is the largest toy company in the United States, known for its Barbie Dolls, Hot Wheels, Matchbox toys, View-Masters, and numerous other toy products. The stock yields 3.3% and trades at 13 times forward earnings. Quarterly earnings were up 23% on a 2.3% rise in quarterly revenues. Total dividend payouts of $297 million are easily covered by operating cash flow of $846 million.

Cherokee Inc. (CHKE) markets apparel and footwear under the brand names of Cherokee, Sideout, Carole Little, Saint Tropez-West, Chorus Line, and All That Jazz. the company gives out a substantial dividend yield of 7.9%, which is paid out on a quarterly basis. The stock has a price to earnings ratio of 15. The company just reported a 16% drop in earnings per share, but on the positive side, its balance sheet remains debt free.

Philips Electronics NV (PHG) makes everything from MP3 players to digital picture frames to flat panel TVs to electric toothbrushes. The stock pay a dividend of 2.6% and trades at 14 times forward earnings. Earnings for the latest quarter were up an incredible 201% on a 9.6% rise in revenues. The stock has 6.32 in cash per share.

To see a free downloadable Excel list of high yield retailer stocks, which can be sorted and updated, go to WallStreetNewsNetwork.com.

Disclosure: Author owns AMZN and MAT.

By Stockerblog.com

With the recent turn of events in the global economy since late 2008, a number of investors who have relied on stock trading to make their fortunes have now turned to the precious metals market as a hedge against inflation and to help secure their financial portfolios. Investors have long been aware of the fact that gold and silver can be excellent investment vehicles, especially when stock trading markets become as unstable and volatile as they have in the past couple of years.

How Gold and Silver has Reached an All-time High Value in Recent Years

In the past couple of years since the U.S. stock market suffered during the 4th quarter of 2008, the price of both gold and silver has increased dramatically. The performance of gold and silver as investment vehicles can often be compared to stock trading because of their fundamental differences. However, to understand the effect of how investing in precious metals affects the stock markets, you have to understand how a stock market crash affects the price of the metals. Typically, the fears that are generated by a major market decline affect the price of gold and silver in a positive fashion.

You have to remember that the price of gold and silver is driven by supply and demand as well as pure speculation like most stock trading commodities. Conversely, and unlike other commodities, the disposal or hoarding of precious metals plays more of a significant role in how the price decreases or increases than what the actual consumption of them does. Most of the mined gold that is still available is found in the form of either bullion or jewellery.

By the end of 2004, about 19% of the worlds global reserves of gold were being held by the central banks and other official organisations. Additionally, there are other factors that come into play where the price of gold and silver are concerned. In the past, political tensions and the trade deficit have devalued certain currencies, especially the U.S. dollar. When this happens, people will shift their investments to precious metals to give them an advantage over what the economy and the stock markets are doing.

Gold Investment Options

Where gold and silver are concerned, there are a number of investment vehicles that an individual can consider. The primary ones are bars, coins and ETFs or Exchange Traded Funds. The most traditional form of purchasing gold is in the form of bars. These are easily purchased at the major banks and typically carry a lower premium than gold coins, hence their popularity. On the other hand, gold coins are the most common way of owning gold.

These are priced according to what is referred to as their fine weight. They are influenced by supply and demand factors as well. Gold ETFs are investment products that are traded much like stocks but with considerably less investment risk attached to them. ETF shares can be sold by the investor to other investors or the investor can sell the shares or units back to the ETF.

Of course, telecoms can carry some risks: land lines are decreasing, cell phone usage is increasing, and more and more households are now using cell phones as their primary if not their only phone. The phone companies aren’t standing still; they are pushing many other services in addition to the usual telephone services. Also, much of the negative news has already been built into the price of many of these stocks.

Many of these stocks have some decent yields, creating some interesting income opportunities. WallStreetNewsNetwork.com has turned up about a dozen of these telecom stocks yielding around 3% or more. As a matter of fact, six of the stocks yield more than 6%.

Alaska Communications Systems Group, Inc. (ALSK) is a provider of both wireless and landlines in the home state of Sarah Palin. The company has a market cap of $467 million, trades at 39 times forward earnings, and pays a generous yield of 8.2%. The operating cash flow of $93 million significantly covers the dividend payout of $38.3 million.

Another high paying telecom stock is CenturyLink, Inc. (CTL), with a 6.8% dividend payout. This Louisiana based company pays $833 million in dividends, easily covered by the $2.09 billion in operating cash flow. The market cap is $12.8 billion, with a forward PE ratio of 13.

Qwest Communications International Inc. (Q), one of the few stocks with a single letter stock ticker symbol, is a $9 billion market cap, a forward PE of 17, and a yield of 4.7%.

To see the rest of the high paying telecommunications companies, check out the free Excel database of high yield telecom stocks, at wsnn.com.

Disclosure: Author did not own any of the above at the time the article was written.

By Stockerblog.com

I am thankful that I live in the technology age, where I can use a small electronic box called a computer to analyze my stocks and trading techniques on something called a spreadsheet.

I am thankful that I live in the information age, where I can get stock quotes instantly without having to call a broker, and I can get all kinds of financial data and up-to-the-second news about stocks I am interested in.

I am thankful that I live in the communication age, where I can connect with my brokerage firm and fellow traders in numerous ways, such as instant messaging, texting, tweeting, and chat-rooming.

I am thankful that I pay less than $10 per trade for commissions, unlike the old days, when I was subject to minimums of $35 to $100, plus add-ons depending on the number of shares.

I am thankful for the bid and asked spreads narrowing to as little as one cent, unlike the old days when it used to be one quarter of a dollar, or occasionally one eighth of a dollar.

I am thankful that I can easily trade internationally, with the ability to buy most major publicly traded companies around the world, and still pay the same low commission.

I am thankful that I can now easily trade a type of mutual fund called an Exchange Traded Fund, which I can buy and sell several times in one day.

I am thankful that I can buy bearish funds through an ETF, which allows me to diversity with a short position without the unlimited risk of shorting a stock.

I am thankful that I can buy funds through an ETF that can give me double and triple leverage, without having the risk of margin calls.

I am thankful that there is so much free instantaneous adjustable charting software available, unlike the old days when we had to wait for our outdated daily and weekly chart books to arrive in the mail.

I am thankful that the commissions on options are so low, allowing me to do spreads that could only have been profitable to market makers back in the old days.

I am thankful for all the option software currently available for free through my brokerage firm that helps me analyze and choose the best collars, iron condors, and other option trading strategies.

I am thankful that I can have money transferred from my brokerage account to my bank account without a fee and quickly, sometimes in as little as 24 hours, unlike the old days, when I had to wait for a check to be sent across country and arrive in my mailbox.

I am thankful that I live in a free enterprise country that allows me to trade stocks freely.

By Fred Fuld III at Stockerblog.com

At the time, I was using an Apple II computer with the Visicalc spreadsheet program. I couldn’t believe that calculations could be done so easily on a small machine and then printed out. I was working for an investment firm at the time and wanted to invest in this little Apple company, but unfortunately, it wasn’t publicly traded. Fortunately, I read in a Forbes article that a publicly traded venture capital company called the Nautilus Fund, had an equity interest in Apple. So to make a long story short, I bought some Nautilus for myself and some relatives, Apple went public, and Apple shares were spun off to the Nautilus shareholders.

Of course, investing in private equity can be very risky, which is why most private private equity firms are private. The few publicly traded ones gives smaller investors an opportunity to participate in this potentially very lucrative investment arena. To cut down on risk, many investors seek out the ones that invest in debt of private companies in addition to equity, so that income can be generated for the shareholders.

An example is Gladstone Capital Corporation (GLAD), which is structured as a closed-end management investment company. The company diversifies its portfolio by investing in both equity and debt securities, and allocating funds towards both small and medium-sized private companies. Gladstone, which has paid monthly dividends for many years, generates a yield of 7.2%. The stock trades at 12.8 times forward earnings and sells for about 3.5% below book value.

Gladstone provides financing for a very diverse portfolio of companies across many industries, including Country Club Enterprises which is the sole distributor of Club Car and E-Z-Go golf carts in the northeast U.S., Legend Communications of Wyoming which is the largest radio operator in their region, Reliable Biopharmaceutical which is a manufacturer of high value advanced pharmaceutical and biochemical products for the generic injectable pharmaceutical industry, Cavert Wire which is the largest supplier of non-galvanized bailing wire in the country, Newhall Laboratories which markets La Bella, Golden Sun, and Rebound personal care products, B-Dry which is the oldest basement waterproofer in the U.S., Access Television Network which distributes infomercials and other paid programming through about 300 cable television systems, and Westlake Hardware which is the largest member of the ACE Hardware Corporation buying cooperative.

Gladstone’s earning announcement will be held November 22.

If you like high yield stocks, such as REITs, utilities, and ETFs, check out the free downloadable lists at WallStreetNewsNetwork.com.

Disclosure: Author owns AAPL at the time the article is written.

By Stockerblog.com

In one of my more recent posts I informed you my wife and I were considering moving. Our conversations about moving started in June and since then, have really picked up. Since July, we talk about it daily. (Most times Im engaged in the dialogue

All kidding aside, our kitchen table conversations are about:

If we really want to move, why?
Where do we want to move?
What (specifically) are we looking for?
Can we afford to move?
What is our long-term or short-term plan for this next home?

For this post, Ill share our top-3 reasons why we want to move…

1)We currently live in a semi-detached home. We have ample interior space but very limited outdoor/backyard space. In our neighbourhood, we feel a little cramped, although we knew this could be an issue when we bought the home. We have little privacy (close to our neighbours; attached on one-side) and weve realized this is something wed like to change. Close proximity to our neighbours (although they are great) makes outdoor life a little louder than wed like; challenging to entertain family and friends, so were looking for some more outdoor space a slightly larger piece of earth to own to gain more privacy. Our preference is for a single-family home on a larger lot.

2)Our semi-detached home only has one parking spot, beyond our garage. We have no problem fitting one car in our garage, and the other car in our driveway, but there is no room left for any visitors to park. When family and friends visit, they must park on the street. In the spring, summer and fall months, this is no problem there is lots of room on the streets. In the winter months, not so much. Parking becomes a challenge. Narrow, snow-filled streets must be manoeuvred with care and, you must abide by the citys winter-parking restrictions or risk getting your car towed when there is anything more than a dusting on the ground. This isnt just a challenge for us living in our community, but for tens of thousands of others in other newly developed Ottawa communities. Our preference is for a driveway/garage with space for at least two cars.

3)Weve recognized we want a large, spacious, great room on our main floor. Sounds simple enough, but its tough to find. Our semi-detached home has some great features and upgrades, but it lacks that fully open-flow you can easily cook, eat and relax in one large, inviting space. Our current home is quite open on the main floor and we tend to have a “good room” not a “great room”. Our preference is to find a spacious bungalow or two-storey home with this feature.

None of these reasons are forcing us from our current place by any means, so were not rushing our decision. Weve looked at hundreds of homes online over the last few months, and almost a dozen in person, since they were legitimate considerations. In the end, none of them felt right. We know passing on “potentials” is part of the house-hunting process. It’s a big decision, for us, for anyone, so we want to be excited about the home, not just OK with it. Hopefully some patience and a dab of luck with land us our new home.

Does the subject of moving come up in your household?
Have you moved recently? Why did you move?

Wish us luck!

Cheers,
Financial Cents

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Also included in the report is a model portfolio that proves that diversification can work when it’s done the right way. Using the Wall Street method of diversification you would have lost close to 30% of your money! In the Global Strategy Portfolio included in the report, you would have made a 23% return on your money during the exact same timeframe. Thats an over 50% swing in just 30 short months. In the report we show you not only how to achieve these results, but we also share the rules that you need to follow in order to get the exact same results in half the time, with less risk.

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If you do nothing and dont download this special report, it could cost you thousands of dollars in losses in your portfolio over the next few months. However, if you call or click on the link below, the report is free of charge along with our Global Strategy Portfolio.

ACT NOW AND RECEIVE THIS REPORT BY EMAIL

Call or click to receive your personal copy of this timely report and it can be in your hands in the next 3 minutes. This report is free of charge and there is no obligation. We guarantee that this report on diversification will have you laughing all the way to the bank.

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Reading and hearing more about insurance than ever before (it seems) got me wondering how much insurance is enough?

In doing some quick research about insurance, I found out you can insure your pet, your LCD TV and even your wedding if want to. Heck, Larry MacDonald even found out there is divorce insurance. Can you imagine someone insuring a wedding and a divorce? Yikes! Click here to read Larry’s article about divorce insurance in the U.S.

Is all that insurance needed? Not for us…

The premise of insurance is a bet against a loss. For this reason, insurance is a sub-set of risk management. You and I (the clients) make an investment to transfer our risk to someone else (the insurer). Insurance is very important for some things in life, no doubt, but largely irrelevant for others. I say this because some insurance products have a perverse relationship with clients needs. Premiums paid by policyholders for insurance coverage, are not necessarily designed for them but rather, are tailored to maximize a client base while providing some basic, boilerplate protection. This allows revenues by the organziation offerring the policy to be optimized. Companies are in business after all, to make profits. I cant blame them. Im a shareholder of an insurance conglomerate and some big Canadian banks; Im glad theyre in business to make money. Understanding how insurance is closely tied to risk management allows my wife and I to focus on what we really want to protect – avoiding many insurance products for material goods. In my opinion, only valuables that are largely irreplaceable or should a potential loss occur, situations that would cause significant financial or personal suffering should be insured. By this Im implying life insurance, critical illness, home insurance or maybe even mortgage insurance; if term insurance premiums are not found cheaper, are excellent insurance products to own. Auto insurance is already the law and rightly so. Insurance for material items like cell phones, TVs and household appliances, although arguably somewhat valuable do not warrant insurance because they can be easily replaced. Why not use your emergency fund to replace your broken cell phone or TV?

In closing, I prefer to give myself peace of mind for what matters most in life not things that seem to matter right now. Insurance is no doubt needed for a few things, but not everything and certainly not for any material goods.

What are your thoughts on insurance?
Have you reflected on what types of insurance you really need?