And we don't encourage that kind of behavior, but ultimately it leads to failure. The other thing I've always found is: A lot of people who say that they're a buy-and-hold investor – they really are a buy-and-fold investor. Meaning that they're very confident in their approach until they're down 50%, in which case they panic and sell. Richard Smith: You know, I do want to speak just for a minute, though, to that idea, that impulse that people are in the markets as gamblers http://casino-games.my/live-casino/. You know, there's an element of that, right?
But I think there's a legitimate way in which investing can be fun. But you can still put the odds in your favor. Going to Vegas and just throwing money at the craps table when you don't know how to play the game is stupid. But there is a way to be a smart investor and still enjoy the thrill of the market without having to have it be totally boring. What do you think?
Porter Stansberry: Sure. But you'll do better if you're totally boring [laughs]. If you build at least half your portfolio into really high-quality, capital-efficient P&C insurance companies that are good underwriters, stuff like – Blackstone commercial mortgage is a fantastic security.
It's yielding 7% or 8% and it's designed in a way where it really can't fail. It's a really bulletproof thing. Same thing with Annaly, which owns mortgages and has an 11% yield.
What I'm saying is: You build your portfolio around a solid financial foundation like that and then you stack on top of that just great businesses, things like Hershey, things like NVR, the home builder that is just an incredible business. Super high-quality companies – you buy them when they're trading at a reasonable price, and you're going to do great. And the stuff that tempts you, the stories about undersea gold mines and stuff like that – it's fine to play along with that, but you have to understand that that's not really investing.
That's speculating. And you really can't afford to speculate with more than about 5% of your portfolio. So if you want to have those names in your portfolio, that's fine. But you have to control your position sizing. And TradeStops will absolutely do that for you. So, Richard, let's move on to how people can get involved with their portfolio that exists today and your software.
How does that work? If I've got an account at say Ameritrade or something like that, how do I link up with TradeStops and start managing my portfolio better? Richard Smith: So, you can subscribe to TradeStops.
You can download your portfolio directly from over two dozen online brokers now. All the big ones: TD Ameritrade, Fidelity, Scottrade, Schwab, etcetera. And you literally synchronize your portfolio into TradeStops. So it's a read-only service.
We download your data from your brokers. We don't actually execute any trades for you. But once you're in TradeStops, you can track your portfolio there.
You can see the volatility quotients on all your stocks. You can do the position sizing and get alerts and monitor your whole portfolio right in TradeStops. Porter Stansberry: I use it. It's great.
Richard Smith: And you can also see the newsletters that you're subscribed to. Porter Stansberry: Yeah. That's the coolest part. [Crosstalk] Richard Smith: Like if you subscribe to True Wealth.
Porter Stansberry: Yeah. You can look at your newsletter portfolios directly in TradeStops. So you can just go through there, figure out which ones you want to put into your model portfolio, rebalance them, and then you know exactly how many shares to buy at your broker. It's really easy to use and it's all point-and-click. There's not any – it's not hard.
Robert is a blogger, novelist and passionate reader. He is a online casino addict, vegan, hiphop head, reclaimed wood collector. Producing at the nexus of art and programing to save the world from bad design. He sometimes makes random things with friends and thinking over table side bets – are they worth it?