To say it more bluntly: If you buy an investment and you don’t have a clear strategy for taking profits if it goes your way, or taking a small loss if it goes against you, you are not investing; you are merely gambling.

The last 2-1/2 years clearly illustrate that it is as important to be out of market during bad times, as it is to be in market during good times. Want proof?

According to InvesTech’s monthly newsletter it turns out that, measuring from 1928 to 2002, if you started with $10 and you followed famous buy-and-hold strategy, that $10 would become $10,957.

If you somehow missed best 30 months, your $10 would only be $154. However, if you managed to miss 30 worst months, your $10 would be $1,317,803! Thus, my point: Missing worst periods has profound impact on long-run compounding. There are times when you end up better off by being out of market.

Interestingly enough, if you missed 30 best months and 30 worst months, your $10 would still be worth $18,558, which is 80% higher than buy-and-hold strategy. This all comes about because stock prices generally go down faster than they go up.

Wall Street and most people tend to overlook value of minimizing loss, and that is exactly why bear demolished more than 50% of many peoples' portfolios while I and those who trusted my advice escaped worst of beast's rampage.

With all that said, if an individual has determined that a short-term loan is best avenue available, then like anything else one should make best informed decision for his or her given predicament.

When considering a short-term loan, ask yourself these 7 questions:

1.What amount of money do I need?

2.When can I pay this money back (principal and fee)?

3.What are repayment terms?

4.Can I meet these repayment terms? (use a calendar, and your budget)

5.Am I pursuing counseling or planning to pursue counseling, so that I don’t have to continue to utilize these short-term loans?

6.If I can’t pay principal and fee, then can I pay extension fee? (use a calendar and your budget)

7.Is this loan new or is this my 1st, 2nd, or 5th time borrowing from a short-term loan source?

Copyright 2003, Stanley T. Crawford, is webmaster of “Get Money” @ http://www.getmoney.giftadollar.com. “Get Money” lists sources of short-term loans, home equity loans, student consolidation loans, and credit care sources. All Rights Reserved. mailto:cigllc@yahoo.com