{"id":53569,"date":"2014-07-01T13:18:32","date_gmt":"2014-07-01T17:18:32","guid":{"rendered":"http:\/\/countingpips.com\/?p=53569"},"modified":"2014-07-01T13:18:32","modified_gmt":"2014-07-01T17:18:32","slug":"5-simple-rules-to-evolve-past-the-hot-stock-list","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2014\/07\/5-simple-rules-to-evolve-past-the-hot-stock-list\/","title":{"rendered":"5 Simple Rules to Evolve Past the Hot-Stock List"},"content":{"rendered":"<div id=\"inves-1831735884\" class=\"inves-below-title-posts inves-entity-placement\"><div id =\"posts_date_custom\"><div align=\"left\">July 1, 2014<\/div><hr style=\"border: none; border-bottom: 3px solid black;\">\r\n<\/div><\/div><h4><span style=\"font-size: small;\">By Andrey Dashkov, <strong>Miller\u2019s Money<\/strong><br \/>\n<\/span><\/h4>\n<p>If you\u2019re a typical small-time investor, chances are you prefer to let a team of analysts fuss about such irksome things as correlation and beta. Maybe you\u2019ve bought a stock because your brother-in-law gave you a hot tip, maybe you heard something about it on a financial news show, or maybe you just loved the company\u2019s product.<iframe loading=\"lazy\" src=\"http:\/\/trk.caseyresearch.com\/f\/?content_id=912&amp;code=PIP&amp;editorial=5-simple-rules-to-evolve-past-the-hot-stock-list\" width=\"1\" height=\"1\" frameborder=\"0\"><\/iframe><\/p>\n<p>Friends often ask me for \u201chot stock tips\u201d\u2014which is like walking up to someone at the craps table and asking what number to bet on. An accomplished craps player will have position limits, stop losses, income targets, and an overall strategy that does not hinge on one roll of the dice. You need an overall strategy long before you put money down.<\/p>\n<p>So, what\u00a0<em>do<\/em>\u00a0I tell those friends asking for hot stock tips? Well, that they can\u00a0retire rich with a 50-20-30 portfolio:<\/p>\n<ul>\n<li><strong>Stocks.<\/strong>\u00a050% in solid, diversified stocks providing healthy dividends and appreciation.<\/li>\n<li><strong>High Yield.<\/strong>\u00a020% in high-yield, dividend-paying investments coupled with appropriate safety measures. These holdings are bought for yield; any appreciation is a nice bonus.<\/li>\n<li><strong>Stable Income.<\/strong>\u00a030% in conservative, stable income vehicles.<\/li>\n<\/ul>\n<p>Unless you\u2019re starting entirely from scratch, you should review your current portfolio allocations, identify where you\u2019re over- or underallocated, and\u00a0<em>then<\/em>\u00a0look for investments to fill those holes. In our portfolio here at <em>Miller&#8217;s Money Forever<\/em>, we separate our recommendations into\u00a0<strong>Stocks<\/strong>,\u00a0<strong>High Yield<\/strong>, and\u00a0<strong>Stable Income<\/strong>\u00a0to help you do just that.<\/p>\n<h3><strong>The Art of the Pick<\/strong><\/h3>\n<p>By the time an investment lands in our portfolio, we\u2019ve already run it through our Five-Point Balancing Test. When your boasting brother-in-law tempts you with a \u201ccan\u2019t-miss opportunity\u201d or some pundit touts a hot tech company on television, you can come back to these five points, again and again.<\/p>\n<ol>\n<li><strong>Is it a solid company or investment vehicle?<\/strong>\u00a0Investing your retirement money safely is a must. How do you know if a company is solid? Take the time to validate essential company information, particularly when the recommendation comes from a source with questionable motivation.<\/li>\n<li><strong>Does it provide good income?<\/strong>\u00a0A good stock combines a robust dividend and appreciation potential.<\/li>\n<li><strong>Is there a good chance for appreciation?<\/strong>\u00a0There are two types of appreciating stocks: those that rise because of general market conditions and those that rise further because of the way management runs the business. We want both.<\/li>\n<li><strong>Does it protect against inflation?<\/strong>\u00a0High inflation is one of the biggest enemies of a retirement portfolio.<\/li>\n<li><strong>Is it easily reversible?<\/strong>\u00a0Ask yourself, \u201cCan I quickly and easily reverse this investment if something unexpected occurs?\u201d The ability to liquidate inexpensively is critical to correcting errors.<\/li>\n<\/ol>\n<h3><strong>Marking the Bull\u2019s-Eye So You Can Hit It<\/strong><\/h3>\n<p>It\u2019s worthwhile to write down your goal\u2014including an income target and the price at which you\u2019ll sell if things head south\u2014with every investment. After all, if you can\u2019t see the bull\u2019s-eye, how will you know if you\u2019ve hit it?<\/p><div id=\"inves-2538711059\" class=\"inves-in-content inves-entity-placement\"><hr style=\"border: 1px solid #ddd;\">\r\n<div id=\"inpost_ads_header\">\r\n<p style=\"font-size:10px; float:left; color:#666;\">Free Reports:<\/p><\/div>\r\n<div id=\"inpost_ads\"> \r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/1ApBOV\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2018\/06\/graph_techs_PD.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t     <a href=\"https:\/\/goo.gl\/1ApBOV\"><b><u>Get Our Free Metatrader 4 Indicators<\/u><\/b><\/a> - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter<\/p><br><br>\r\n<br>\r\n<br>\r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/f3RrHX\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2019\/01\/cot_pie_80.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t    <a href=\"https:\/\/goo.gl\/f3RrHX\"><b><u>Get our Weekly Commitment of Traders Reports<\/u><\/b><\/a> - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.<\/p><br><br>\r\n<\/div>\r\n<hr style=\"border: 1px solid #ddd;\">\r\n<br><\/div>\n<p>Buying any investment because a trusted advisor, newsletter, or pundit recommended it is not a good enough reason. Buying because your portfolio has a hole, you understand the company, the investment vehicle, the risks, and the potential is.<\/p>\n<p>Remember, retiring rich means having enough money to enjoy your lifestyle without money worries. Do your homework on every investment and you\u2019ll make that pleasant thought your life\u2019s reality.<\/p>\n<p><strong><em>Miller\u2019s Money Weekly &#8211; <\/em><\/strong><a href=\"http:\/\/www.millersmoney.com\/go\/v8t3m-2\/PIP\" target=\"_blank\">Sign up here to receive it every Thursday.<\/a><\/p>\n<p>&nbsp;<\/p>\n<div id=\"xvMdV95u77zU\" style=\"clear: both;\">The article <a href=\"http:\/\/www.millersmoney.com\/go\/v8t6n-2\/PIP\" rel=\"permalink\">5 Simple Rules to Evolve Past the Hot-Stock List<\/a> was originally published at <a href=\"http:\/\/www.millersmoney.com\/go\/v8t9p-2\/PIP\">millersmoney.com<\/a>.<\/div>\n<div style=\"clear: both;\"><\/div>\n<div style=\"clear: both;\"><\/div>\n<div style=\"clear: both;\"><\/div>\n<div style=\"clear: both;\"><\/div>\n<div style=\"clear: both;\"><\/div>\n<div style=\"clear: both;\"><\/div>\n","protected":false},"excerpt":{"rendered":"<p>By Andrey Dashkov, Miller\u2019s Money If you\u2019re a typical small-time investor, chances are you prefer to let a team of analysts fuss about such irksome things as correlation and beta. Maybe you\u2019ve bought a stock because your brother-in-law gave you a hot tip, maybe you heard something about it on a financial news show, or [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-53569","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/53569","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=53569"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/53569\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=53569"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=53569"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=53569"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}