In one of Carlyle's earliest productions, dealing with the philosophy of Clothes, ( Sartor Resartus: The Life and Opinions of Herr Teufelsdrockh ) he showed that a mankind quite plainly reveals its inner self by what they wears. So we would now discuss what mankind, reveals by the eternal question, "How?"
And what about that mysterious quintessence of the ether ( Internet )? It can neither be felt, handled, heard, seen, smelt nor tasted yet, mankind has learned; so much about its "how" that they are turning it into a servant, obedient to its wishes, as they has made of electricity - the cause of sublime thunder that can can vibrate through space.. Mankind bids the ether carry stock quotations or any other message to the ends of the earth. 1
This is a game-plan modified from the paperback book, “How to Make $1,000,000 in the Stock Market Automatically” by Robert Lichello2 - currently in its fourth or fifth printing. I have added additional columns, to assist me in my decision, before I commit any capital to the experiment. Hey, it's better than no plan at all !!
Using the power of the Internet and an electronic ledger ( ie. Microsoft – Excell or Sun Microsystems - Open Office Calc. ) I set up the following twenty-one ( 21 ) columns under the stock symbol in question. In other words, anything connected with the stock-play and analysis of that stock-play I have recorded on ledger. I retain both an electronic & hard copy. With the 'electronic version', I can pre-program all math calculations to appear automatically with basic entry. The 'hard copy' is for security purposes. The columns include:
Current Date, Source of Information, Stock Current Price, Stock Current Value, Safe ( 10% ), Money Spent, Shares Buy, Shares Sell, Shares Owned, Portfolio Value, Buy or Sell Market Order, Income Earned, Original % Gain, Bull or Bear % Profit, Commissions Paid, High 52 weeks, Low 52 weeks, Price % Gain (+ or -),
With a capital-play of $1,000, I set 50% aside and play with 50%. I spend the $500 according to the ledger – keeping the other $500 in case of back-up - if the price reacts to the buy and drops further. It seems, in the penny stock market any action significantly effects the price – because there is so little action.
Note:
- Stock market share lot minimum ( buy or sell ) : Toronto 500 and Vancouver 100 unless broken share lot requested..
- I sometimes play on paper before a buy since I have already established my buy point from the 52 week High & Low. I remember to always “Buy low and sell high...” when transacting business.
- Canada has the TFSA ( Tax Free Savings Account ) now available which is great for speculators like myself. This is like a nation-wide contest to see who can accumulate the most profit.
Now, I have to find a bottom-fish stock with the highest chance of multiplying into a double or triple. When the stock price doubles, 50% of my holdings are sold to recover initial costs with added profit. If the stock price doubles again, then I sell accordingly to what the ledger instructs - under the buy or sell advice column. The ledger is set up to illustrate and direct my buy and sell decisions. The ledger does the thinking for me - using arithmetic. It's a Really Simple Solution ( RSS ). I always hold on to my initial share lot investment.
Note Ledger Equations:
- Price % Gain ( + or - ) = (Current Price – last price recorded) / current price x 100 = x%.
- Profit or Loss = Cash spent - New Portfolio value = x.
- Original % Gain ( Bull ) = (H – L) / H = x% possible loss if bought at bull high price and sold at bear low price.
- Original % Gain ( Bear ) = (H – L) / L = x% possible gain if stock bought at bear low price and the stock price raises to its bull high price.
- % Commission paid = Commission payed / Cash Spent x 100 = x%
Special References: J.W. Klapman in “Hints on Developing Personality” - “The collective instinct is the persistent desire to belong to a group or class of intellect. The best contribution is not a sameness and repetition of personalities. Certain obligations (chores) and basic social requirements (etiquette) must be addressed. As an individual unit of society, advances in new and original directions need to be investigated. Examples, experiment and thinking for oneself and competing to higher levels of achievement. We therefore presume that desires are suggested and dictated by a sense of discrimination, with values implanted through the exercise of the intellect to achieve 100% perfection.”
1 The Question “ HOW? “ - William Hanna Thomson ( 1833-1918 ) - pages 1 and 6 2 How to Make $1,000,000 in the Stock Market Automatically – R. Lichello 1977
Updates: 2009-11-03 Canadian Press - Financial Literacy added to Curriculum ... Ontario's Education Minister for Education has introduced this concept for 2011-09. Grade 4 to Grade 12 students will soon learn how to use and manage money.


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