Ive been looking at the CLF board and everyone is pointing to what the media is reporting about how low commodity prices are and china this and china that and I found a blog that made basic sense to me on investing in CLF now. Its a simple investing strategy that a lot of people forget when they get wrapped up in the media. A part of the essay begins with "Hop off the emotional roller coaster. To cultivate a good temperament -- one that focuses on the long term, not the short term, and ignores the crowd in favor of a well-thought-out strategy -- channel Steve McQueen (or whomever is the cool dude/dame du jour). Build resistance to the emotional triggers that lead to bad investment decisions. Here are a few exercises we regularly do to keep our cool:
1.Memorize this affirmation: "I am an investor; I am not a speculator." All together now: "I am an investor; I am not a speculator." As investors, we:
•Buy stock in solid businesses. We expect to be rewarded over time through share price appreciation, dividends, or share repurchases.
•Don't time the market. And we certainly don't speculate when we buy stocks. Speculation is what Wall Street traders do.
•Focus on the value of the businesses we invest in. We try not to fixate on the day-to-day movements in stock prices.
•Buy to hold. We buy stocks with the intention of holding them for long haul. (That said, we are willing to sell for reasons we outline in Step 10.)
We recognize that believing your affirmation is sometimes easier than living it. To avoid behaving like a speculator …
2.Tune out the noise: Put down the newspaper, turn off CNBC, and stop clicking that. And that. And, yes, that too. None of it is doing you any good.
Fixating on the market's minute-to-minute news won't help you make your next brilliant financial move. At best, all the hours, days, and weeks spent soaking in sensational stories will yield a few timely bon mots to toss off at the next office happy hour. Mostly, though, it's all noise, and it's costing you a serious amount of sound sleep -- and maybe even some actual money." So anyway, i'm going to continue to buy CLF in small blocks over time and going to see what happens over a long time. Like I said, people are gonna need iron regardless of what china or anybody says or does.