Market Wrap-Up for Apr.11 (NYX, TYC, APC, CNX, VFC, MON, more)

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The markets got off to a mixed start this week as some small deals got done over the weekend, while other potential deals grabbed the early headlines.

NYSE Euronext ( NYX ) shares finished lower after the company announced it would not entertain an offer from Nasdaq OMX/Intercontinental Exchange. I had mentioned to readers that taking some profits off the table on the initial pop on the news was the best play in the short term. The only way this stays alive is if Nasdaq/ICE decide to raise their offer. At that point, things could get interesting. Not sure if that will happen though. It is certainly a situation I will be watching.

Meanwhile, shares of Tyco International ( TYC ) closed up 3% on a potential bid coming from French-based Schneider Electric SA. Investment bankers could be instrumental in keeping the rally going with all the deal possibilities being thrown around. Elsewhere, shares of Monsanto ( MON ), BHP Billiton ( BHP ), and V.F. Corp ( VFC ) all rallied following positive analyst comments out this morning. Sellers appeared this afternoon in the commodity space, with Consol Energy ( CNX ), Anadarko Petroleum ( APC ), and Occidental Petroleum ( OXY ) seeing much of the attention on the downside.


Let's take a look at some investing anecdotes this morning and how they can affect one's portfolio:

1. Making Quick Decisions

As a trader, one would become conditioned to having to react to news headlines as quickly as possible if daytrading is one's gameplan. Most of the time, making quick calls is equal to flipping a coin in the air, heads or tails. It's pure gambling and not much else. For an investor looking to make a better risk/reward calculation, preparation is often the best weapon you can possess. Spend some time figuring out exactly what you're going to do, what your goal is for the move you are about to make, and what the parameters need to be before you even dive in.

2. Fear of Headline Risk

I talk about this often when it comes to those who loved to be glued to their television sets day and night. The business media will shake you out of many positions if you let them come into your lives all hours of the day. Brokers love investors that trade a lot as transaction costs are just gravy to them. You need to get away from being bombarded by the "breaking news" effect. Think long-term and take a look at your portfolio once a day, but no more - if you fall into the "I need to know what the news is" category. Otherwise, once a week is plenty of time to check in to see how things are going.

3. Getting Too Complacent

This is pretty much the opposite of the second example above. Too often investors get complacent with their losers instead of winners, believe it or not. They tend to ignore the losers and instead focus on the names that are up (sometimes selling out way too soon). Don't ever get complacent when weeds start appearing in your portfolio. Remember my rule - anything that is down 25% or more from its 52-week high should be looked at closely, and considered as a name that could be trimmed or eliminated entirely from your portfolio.

I'll have more investment nuggets to share as we move forward.

I hope everyone has had a chance to check out our Dividend.com Premium members-only weekend articles, including the new features that highlight some of the biggest winners and losers from the week that was, in regards to analyst upgrades, downgrades, as well as earnings/story stocks. We also had a rundown of how various Dividend ETFs performed on the week. Our expanded dividend data is pretty much all in place so anyone that focuses on "Dividend Capture" strategies should have plenty of good stuff to research each day. Speaking of dividend capture, premium members can now access a new 9 page report we just released on things an active investor needs to know when it comes to a dividend capture strategy. Be sure to check it out!

The early reviews are starting to come in and the one central theme is how easy my "Be a Dividend Millionaire" book is to understand! This is what I was hoping it would be for the masses. I have gotten quite a few people who said they have read it cover-to-cover in a day or two. Too often books start off with the right message, but then get loaded with tons of filler and become boring. Stock market pundits tend to go over the top with lingo that just darts over a readers' head. The book assumes little as far as investor expertise goes. I hope everyone gets a copy or even a few to pass along to friends and family.

I had a lot of fun on Mike Brown's "The Money Show" this past Saturday on KMOX-AM ( CBS ) - St.Louis. I will be on with Mark Cope tonight in Dallas at 6:15pm, so if you are in the listening area, please tune in to KXYL-FM.

Thanks again for reading! Please pass this on to anyone you think we can get inspired and educated about building wealth and using common sense to do so.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Stocks

Referenced Stocks: APC , BHP , CBS , CNX , MON

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