“SIMPLICITY” seems to be the rule in INVESTING what do you think?

Someone told me that if you can’t explain your reasoning to a 10 year old about why your buying a stock then you probably shouldn’t buy it. IT SEEMS TRUE!!! The most simple logic for me as an example I bought dollar tree stores inc. when they were about 22 bucks a share about 2 months ago. Why? I thought they were too low and undervalued as their profits hadn’t been shown to change and GUESS what I sold at 29 making a nice little profit of 7 bucks a share. It was a simple idea though that I could explain to a 10 year old. I also have been investing in things that do the INVERSE of the market because as we all know the general market is going down down. So I choose SKF, SRS, QID and for the most part they are doing well. Again I could have explained that too a 10 year old buy investments that inverse the market when the economy is bad. SIMPLE!! IT seems that way too when I buy stocks that have a narrow sideways price i.e. a FLAT LINE and then as they start to go up a little you buy and they usually continue. A “NARROW DIEWAYS PRICE CHANNEL” Again though this is simple the supply equals the demand for the stock so it’s level and then when the demand gets higher it shoots up becasue the demand all of a sudden shot up simple right? OPINIONS???


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