Not an Easy Place to Make Money

 | Oct 25, 2011 | 6:37 PM EDT
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This market gives you something for everybody. Yesterday, you can be so glad you liked the cyclicals. Today, you can be so glad you are short them. Yesterday, you have to love the high fliers. Today was an "I-told-you-so" day. Yesterday brought us up almost 1000 points for the month. Today made the bears look smart as all get out and allowed them to say "what did you think was going to happen you moron and now I am 100% short."

Angry and proud bulls and bears.

Making things really tough is a vicious confluence of gold-rallying signaling that you can forget about a European accord, and Amazon (AMZN) getting clocked after a spectacular run. These are the kinds of stories that the bears can't make up, they are so horrible.

How tough are things? This is one of those days that if you ever recommended a stock that went down today, even if you made people 200% on it, you are a total bum. It is a day where people seemed to learn, alas, that stocks can go down, too.

It is almost as if every time we get a good couple of weeks, we bring in people who think that what the stock market does is "go up" and then they are furious at someone, hey, why not me, when they go down!

Well, I don't mind. I am a seasoned pain-taker who has had more than his share of tomatoes thrown at him, including Jersey Beefsteaks.

Look, the stock market is not an easy place to make money. You give it up a lot faster than you make it. I preach three things: 1) Diversification, 2) Dividends and 3) Taking profits. Those are the bedrock principles. That doesn't absolve me if my dividend-paying stocks are always going down or my longs constantly run without me because I have endlessly taken tiny gains. But, it is, alas, the lowest risk way to make the most amount of money.

The people hot under the collar tonight I know are doing it exactly the opposite and blaming me for doing so.

To which I say, go ahead. Knock yourself out. But if you want to try to make more money stick by my rules not the rules you think I believe in.

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