Lobster Trapping for Investment Ideas

Recently, my family and I took a trip to Maine to visit relatives. During our stay, we toured the rocky shore lines and took in the beautiful architecture of the old towns.

One sunny morning, three generations of Wardlaws boarded a lobster boat and set out on a guided lobster trapping excursion.

We quickly learned lobstermen lead a life of hard work and regulations.

Over the course of many years, Maine's lobstermen and state officials have established certain criteria to protect lobsters and allow for greater development. With the rules, lobstermen look for "keepers."

A "keeper" is a lobster that measures between 3.25 and 5 inches from its eye socket to the end of its back shell. In addition to the precise measurements, the lobster cannot carry eggs nor can it have a notch in its tail (indicating it is a breeding female). The notch is carved from prior lobstermen who observed the lobster's breeding.

If the lobster does not fit the criteria set forth, it is discarded and placed back in the waters.

As an investor, you constantly look for "keepers." At your disposal is a wealth of information to determine the quality of a position.

Depending on your predetermined goals (including risk tolerances and time horizons), you may use a number of measurement tools. If the position does not fit such benchmarks, you may consider moving on to a more appropriate position.

For example, among the many rules of measurement, an investor may look toward a mutual fund's beta. Of course the fund's management, its fees, asset allocations and historical performance should play a role as well.

For bonds, an investor may consider its maturity, the coupon, its yield to maturity (or call), price, and rating. An investor must also determine the type of bond. Do you prefer a municipal, treasury, or corporate bond?

And with regards to stocks, if you have been an investor for any number of years, you know the drill. Between fundamental and technical analysis, you have several traps to pull from the waters.

It is important to know the criteria that is appropriate for your portfolio. Remember, some positions may be keepers while others may be discarded.

Wardlaw has been involved in the fields of investments and insurance for over twelve years. The author's belief is that familiar life elements best illustrate practical investment strategies; not typical investment jargon. For comments and questions, please contact the author at tools2invest@yahoo.com

---

Ebooks, Scripts, Websites, and more...

Adsense websites

Investors: Avoid These 5 Common Tax Mistakes

For many investors, and even some tax professionals, sorting through... Read More

Finding a Broker

"Hey Joe! I need help finding a broker. I notice... Read More

Property Investment Just Got Exciting

There is an area in Brazil that has lower crime... Read More

Lessons in Transition

Q: What have been the most successful approaches to attracting... Read More

Issuing Warrants to Investors

When raising capital for a business venture, warrants are a... Read More

Investor Guide to Financial Health

Step 1: Spend less than you earnPerhaps the simplest financial... Read More

Shareholders Meeting Changing With Times

A significant number of corporations that settled accounts in the... Read More

Trading Tips No 3: Online Trading and Investing: Buy, Hold, and Hope

So you have learned how to trade the markets by... Read More

Brain Snappers and Other Wall Street Nonsense

The last time you spoke with your broker did he... Read More

The Power of Small Numbers: Trading Success is Based on Consistency, Not Home Runs

Online trading is so seductive - just sit, click, and... Read More

Need To Trade!

You don't HAVE to be trading.As a novice trader, you'll... Read More

Retirement or Financial Freedom?

In the past most people never retired. They died. The... Read More

Quit and Retire Three Years Earlier!

For most people, there is a direct correlation between how... Read More

Eight Questions to Ask Your Financial Advisor

You may like your financial advisor, but is he really... Read More

The High Price of Oil

In less than four years, the price of oil has... Read More

Why Do You Want to Become a Online Trader?

Motivational guru Tony Robbins teaches that the reason for doing... Read More

Annuity Investment - The Whole Truth

Do you ever feel like you haven't been told the... Read More

Holy Grail Investments

Every year I go to the Money Show in Orlando,... Read More

Almost Anyone Can Open A Roth IRA!

The Roth is kind of weird until you get used... Read More

Remembering TEOTWAWKI and Learning from It

Its only been about 5 years since we had major... Read More

Have You Ever Seen A Map of the World Turned Upside Down?

For those accustomed to viewing things a certain way, it... Read More

Delist My Corporation Please

It use to be said that once a company was... Read More

Bearish or Bullish?

If you are interested in stock investing and the stock... Read More

Investing Online Has Its Rewards: Find Out How To Take Advantage Of Them

Computerized investing. Online investing. Have you taken the next step... Read More

Foreign Investing - US Investors Still Missing Out?

Investors are still too slowly realizing what the academics have... Read More