Market Trading vs TSP

**Spaf** · 12-04-2006, 06:53 AM

Market Trading vs TSP

I don't know if this thread should be in Psychology or Retirement?

TSPTalk is a great vehicle for understanding the prevention of large losses and the maximizing of gains!

However, we have a Risk vs Reward conundrum. The problem seems to be in the understanding capital preservation.

We have some members that can set the gains afire!.........

However (again), is this the picture we want to project? What about the members/viewers that are not so skilled?

So, here is my solution. [please feel free to dispute, or add to posts]

When not nearing retirement stay with the principal of minimizing losses and maximizing gains. i.e., Like some of the L-funds, you can be aggressive!

When nearing retirement try to protect capital preservation in TSP and ensure that the savings plan provides a leg of support. But, be knowledgeable in how to transfer funds in case of a bear or bubble market for your TSP funds.

If you want to continue as a Trader, then set up a trading fund with a reputable internet broker.

Also, set your self up with a mentor, a "professional investor" a reflection that can give real advice with a proven track record.

Thus you have all bases covered. TSP is protected, and you can trade with confidence.

Respectfuly.
Spaf

PS: Doesn't this web site provide this....

**mayday** · 12-05-2006, 11:28 AM

This site helps us to pay attention and focus on what is moving the market. Many members on this site are aggessive. You can tell by the 100% moves to the various funds. Those that move in this manner are speculators very focused on what they believe will happen the next business day. If you are focused and have the stomach for this kind of risk the rewards can be great. If you are not paying attention do'nt risk your capital. This happened to me in May I was focused on preparing a house to sell took my attention off the market and rode it all the way down. Paying attention is the key. For all those away from a computer or on deployment I suggest taking advantage of the L-funds its a safe guard against loss. No-one wants to lose. Capital Preservation should always be on you mind. But you have to be in to win.

**Birchtree** · 12-05-2006, 01:59 PM

I have a deployed daughter and she is 100% C with contribution at 100% C, she is concerned to buy as many shares as she can while the opportunity is available. The goal at her age is accumulate, accumulate and accumulate some more - not worry about the corrections but rather rely on fate to steer the course. The time to become defensive won't be until 2010.

**atcsat64** · 12-05-2006, 05:18 PM

Capital preservation is the main reason I am on this site. It's what got me here, trying to avoid the 10% (or more) corrections. Staying informed is the most important thing. In the past, like many others, I have lost a lot (TSP) by staying in stocks too long, and also by staying in G too long. Comes from a lack of education in the financial world, waiting till retirement is nearing to care about it, etc... Now that I have a little knowledge and a lot of help/info available I will soon start into stocks again outside TSP. I see myself making way fewer moves in TSP and spending more time researching individual stocks.

One thing that has plagued me is that when I go on vacation, I like to leave everything behind... watch, phone, news, and really relax. And what happens? My TSP always loses a lot. I should learn from that, but I haven't yet. Anybody else?

**atcsat64** · 12-05-2006, 05:25 PM

Originally Posted by Birchtree

I have a deployed daughter and she is 100% C with contribution at 100% C, she is concerned to buy as many shares as she can while the opportunity is available. The goal at her age is accumulate, accumulate and accumulate some more

Good for you steering her the right directiion! YOU THE MAN! I wish I'd had that (or any) guideance.

**Birchtree** · 12-05-2006, 05:31 PM

If you got a good DCA going on then feel privileged when your account balance gives back a little, it only means you are buying at lower prices. What an opportunity to shop - even when on vacation. I did the same thing back in October - shut it down and went on vacation. Fate was kind to me.

**FUTURESTRADER** · 12-05-2006, 06:19 PM

Originally Posted by mayday

This site helps us to pay attention and focus on what is moving the market. Many members on this site are aggessive. You can tell by the 100% moves to the various funds. Those that move in this manner are speculators very focused on what they believe will happen the next business day. If you are focused and have the stomach for this kind of risk the rewards can be great. If you are not paying attention do'nt risk your capital. This happened to me in May I was focused on preparing a house to sell took my attention off the market and rode it all the way down. Paying attention is the key. For all those away from a computer or on deployment I suggest taking advantage of the L-funds its a safe guard against loss. No-one wants to lose. Capital Preservation should always be on you mind. But you have to be in to win.

I agree, Mayday, good idea. When on vacation go into L fund of your risk tolerance. Or 20% each? I think Griffin'sfigures were suggesting 20% ea. will underperform L40 however, over a few or several years. But who am I kidding. My laptop w/wireless card are on the beach with me

**mayday** · 12-06-2006, 12:39 AM

Originally Posted by FUTURESTRADER

I agree, Mayday, good idea. When on vacation go into L fund of your risk tolerance. Or 20% each? I think Griffin'sfigures were suggesting 20% ea. will underperform L40 however, over a few or several years. But who am I kidding. My laptop w/wireless card are on the beach with me

I did well with the real estate this summer. Sold my place without the help of a realtor. After all the painting fixing doing floors straightening getting a professional appraisal. First add sold within a week 5000K under appraisal. Closed in July after the packing the moving. During all this effort to save money my TSP sank. Why? Because I had my mind on other things and I did'nt put my TSP on automatic. Pay attention and do'nt make the same mistake.

**fabijo** · 12-06-2006, 02:34 AM

Originally Posted by FUTURESTRADER

I agree, Mayday, good idea. When on vacation go into L fund of your risk tolerance. Or 20% each? I think Griffin'sfigures were suggesting 20% ea. will underperform L40 however, over a few or several years. But who am I kidding. My laptop w/wireless card are on the beach with me

or just have your computer do the trading for you!

**mayday** · 12-06-2006, 04:40 AM

Originally Posted by fabijo

or just have your computer do the trading for you!

Sounds like a dream. How can this program read market conditions day to day? Just wondering.

**weatherweenie** · 12-06-2006, 05:58 AM

Originally Posted by mayday

Sounds like a dream. How can this program read market conditions day to day? Just wondering.

Would be no problem, for HAL.

**Spaf** · 12-06-2006, 06:20 AM

Originally Posted by mayday

Sounds like a dream. How can this program read market conditions day to day? Just wondering.

Mayday,
Had lunch with some old friends, their son came along, he's a electronics guru that works for Yahoo!
He had a cell phone that connected to the internet and functioned just like a computer. I could log onto my broker, set stops and buys, connect with TSPTalk, make a phone call, and watch TV. All in package slightly bigger than a package of cigarettes.
Amazing!
Maybe Santa need to bring us some of these things!..........

Spaf