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Re: Anyone taking the 10% penalty and cashing out 401k or …

Home Forums DISCUSS General Discussion and Questions Anyone taking the 10% penalty and cashing out 401k or IRA? Re: Anyone taking the 10% penalty and cashing out 401k or …

  • Fri, Jan 08, 2010 - 06:11pm

    #90
    Peak Prosperity Admin

    Peak Prosperity Admin

    Status Bronze Member (Offline)

    Joined: Oct 31 2017

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    Re: Anyone taking the 10% penalty and cashing out 401k or …

[quote=Mom-2-3-kids]

That might be my next move.  Then what country and what stocks to invest in can be challenging. 

I have my eye on Brazil, Australia, Canada, and Asia.

Any suggestions are welcome! hehe

[/quote]

Mom –

My $.02 here (apologies for the repeat to those who are familiar with what Cat and I do)

First off, become market neutral and focus on stocks that move.  Trade them in the direction of the general market movement.  You become immune to green days and red days.  You also become immune to the noise surrounding a company as you don’t care about a company’s underlying fundamentals, only on the fact that the price of the stock is moving.

Cat and I trade options – with a very explicit and well defined rule set to enter and exit trades.  We take a chunk of a price move, never getting the first best dollar, and never sticking around for the last, highest dollar.

Buy in or near the money options and ALWAYS buy at least 5 months of time so option price time decay is not an issue.

ANd most important, if and when your trade backs up on you, cut your losses, close the position with most of your money and move on to the next trade opportunity.  Focusing on minimizing your losses on a trade that goes against you is far more important than focusing on finding the hugely profitable trades.  You will find that if you focus on developing the discipline to minimize your losses, the compounding affect of the profitable trades that go your direction takes care of itself and is as easy as breathing. 

Develop your trading style and practice, practice, practice. 

DIA, OEX, NDX.X, POT, RIMM and GS have all provided great trading opportunities lately.

And anytime I can take money from Goldman-Sachs and piss off Timmy Geithner it’s a good day.