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No. of Recommendations: 2
Jim,

As a fellow cyclist, I can "feel your pain".

For me, it was coming down a gentile hill and making a turn at the bottom when the bike slide out under me as I hit a patch of loose, wet leaves. Ripped holes in my left pant leg and the skin underneath. Ouch! Another time, I was coming out of a parking lot and crossing the street when I jumped the chain and went down fast, my head was slamming the ground hard. Saw stars for moment, but suffered no injury. (Thank goodness for helmets.)

As for your buying NEE-PN and me not buying it --or any other issue-- that's more than to be expected, because each of us worries about different things, because each of us comes to markets with different past experiences and different present expectations. An analogy would be fishing. There are dozens of ways to do it and what often matters isn't bringing lots of fish to net, but just being on the water and enjoying the time away from a computer screen.

My suggestion, though, would be this. No matter how risky an opportunity seems to be --or how promising-- it's proper position-sizing that's going to mean long-term survival, not "diversification", which is a crock, because when markets are under stress, correlations tend toward 1.0. Yeah, when a sketchy position works out, we all wish we had bought more. But when such positions fail, we're glad we didn't buy more than we did.

Linda Raschke --one of the world's top traders whom most have never heard of-- addresses this problem by making all of her bets the same size. That a tactic I've borrowed for my own investing. If it's a junk bond, I buy just two. I'll go five for 'enterprising' and ten for 'defensive'. I'm trying to do the same with my buying preferreds.

Arindam
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