This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Want Superior Returns? Get Out Of Your Comfort Zone

Stocks in this article: FLATX

We were recently contacted by someone who told us he had just started cloning our investment portfolio. Of course, this is a compliment—or at least it should be. But we knew this person had been following our investment work since 2005. Why start now?

One possible answer is that after seven years of watching our work, and with the market going up in an almost straight line since March 2009, he was now feeling confident enough to dip a first toe in the stock market water. That could prove to be a mistake.

The average investor is notorious for buying into the market at market tops when confidence is high. To make money in the stock market it’s imperative to have capital to invest when people hate the market and are fleeing in droves. In order to have capital for the bottoms you need to sell near the tops, not buy.

In March 2009, at a generational stock market low, when we kept back a year of living expenses and pushed every other dime we had into the market, nobody was asking us if it was a good time to invest—people were too busy jumping out of windows or hiding under the bed.

Probably the single most important attribute required to be a successful investor is the right temperament. One needs to be able to invest during times of fear and leave the party when people start looking a little tipsy. Someone who only feels brave enough to take a seat during good times is also likely to leave during bad times. Buying high and selling low will never make anyone money.

One of the statistics we are most proud of is this: Since 1992 (21 years) we’ve invested in, and closed on, 117 companies. Of these, we made money or got our money back on 109 of them for a no-loss investment ratio of 93%. If you include current open positions, the ratio is currently 90%. This is after two decades of investing.

For us to do consistently well as investors, we need around ninety-five people out of a hundred to disagree with us—more if possible.

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs