2012 Return On My Portfolio

For the past 8 years (2005-2012), I have been using my Stock Trading Riches system to manage my portfolio.

While I tied the market in 2012, I have beaten the S&P 500 over those 8 years:

Year, Me, S&P 500

2005, +13%, +4.91%

2006, +14%, +15.79%

2007, +22%, +5.49%

2008, -40%, -38.49%

2009, +44%, +23.5%

2010, +22%, +13%

2011, -5%, 2.11%

2012, +13.3%, 13.4%

My portfolio has had a cumulative eight-year return of +78.31% vs. +27.37% for the S&P500.

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Online Articles Mentioning My Book "Stock Trading Riches"

My book and I are mentioned in these two articles from NBC.com and FoxBusiness.com.

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Happy Halloween!

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New Amazon Review of "Stock Trading Riches"

Today, a reader posted a nice, detailed 5-star review of "Stock Trading Riches" on Amazon.com:

"I am a short term trader by heart but needed a system to manage my retirement accounts and this one certainly works very well.

I used the excel sheet provided in the book to test dozens of random stocks over the past 6 years and about 80% beat Buy and Hold over the same time period.

The results were good but I needed more proof since the market conditions of the last 6 years did not capture every possible market scenerio.

With the excel sheet , I simply created every possible market movement I could think of and still my results were very good.

This is the kind of system someone with very little investment or trading experience can pick-up and implement right away,that's how simple it is. I found that it will work for retirement accounts and trading accounts.

Many times ,especially those of us who are traders, dismiss the simple for being ineffective but the truth is the more complex the trading system the more likely it is to fail over time.

And oh yeah-what I love most about this book-he gets right to the point and shows you how the system works. No beating around the bush for a 100 pages."

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Gangnam Style - You Just Have To Watch This

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Praveen in a Video Discussion on The Future of Money: Bitcoin, Economics, The Gold Standard, And Work

Because of my book, some popular bloggers asked me to join an interview/panel discussion on money and finance. (I came on a few minutes late).

Here is the interview on you tube:

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Follow Up to "Why I Just Bought Facebook (FB) Stock"

I consider my IPO purchase of Facebook (FB) to be  a contrarian move because the stock behaved differently than the conventional wisdom at the time. 

 I wasn't initially planning to buy but, from what I had read and from talking to other people in high technology, everyone expected Facebook to soar at the opening.  I know someone, a senior executive at a high-tech company, who placed a limit order at the open to not buy over 55. So, he expected it to pop.

 When I saw that it didn't soar like everyone predicted, I decided to buy it.  

 I thought it would increase over the next few days/weeks.  As we now know, it didn't.  Instead, it is down about 50%.  Even though I didn't expect this, I am ok with it.

Because my system diversifies, and each individual position is re-balanced yearly, I feel safe sometimes taking a risk on stock. 

I will rebalance my Facebook position at the end of the year. Even with Facebook's performance, my portfolio is up 11% for the year.

I don't use any stop losses with the Stock Trading Riches system - other than replace a position if I feel that there is something fundamentally wrong with the company. In my book, I list an optional stop loss rule in the section about customizing my system. It calls for replacing a stock if it declines 50% (or X% - it can be customized) from the initial buy. I state in the section that I don't use this rule myself, and it would have prevented the performance in the AMZN stock example in my book.

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