Monday, June 13, 2011

Hold Your Horses!

Bloody red Monday!

emma+pollock%3AIf+silence+means+that+much+to+youThe stock market fell down further and most of the stocks decline. Phisix went down to 4170! Obviously, this is expected in a healthy stock market. In the normal cycle of the stock market, it will go up a certain period of time and then it will go down again. It is just a cycle, a cycle where if you are smart to buy in the low and sell in the high, you will profit handsomely.

Bloody+MoonToday's bloody red Monday is just one of those down moments of the stock market. Nothing unusual actually. The stock investors are just taking profit from the highs and stay in the background until the stock market will go up again. Some investors also sold their stocks portfolio and wait until further signs of upswing trend. Some investors who bought while the stock is going up and then sold it when it went down might have incurred losses. This is what we will try to avoid. If you invest while the stock market is going up and then wait until it reaches the highest point which of course nobody knows, the fearful investor might end up selling his stock when the panic attacks. Yes, in stock market, emotional discipline is
needed. It is actually a requirement for every person wishing to invest in the stock market.
Although nobody has perfected the right timings when to invest and sell in the stock market, there are calculated risks an investor must take.

Factoring the expertise of others that you have consulted, it is only you and your analysis that you must consider in investing in the stock market. Yes, you may consult your stockbroker for good stocks to buy, and your mentor for the right timings to buy, but it will still be your decision that matters most. You need to make your own due diligence in the stocks being recommended and the timings being suggested. I remember the story of a fund manager during the early 2000 when his hedge fund profited more than 200% in a year. He said that the Internet stocks are the companies that will grow most for the rest of the century. Some investors believed in him. Two years later, the stocks went down and he lost most of his wealth including clients. Your decision is the best decision you will ever consider from differing opinions.

171Experience they say is a great teacher. Yes that is true and that is applicable to stock market also. I have experience losses and gains as well and I experienced it as early as possible so that it will benefit me earlier. One of those experiences is that I needed to have the discipline to stick with my principles in the stock market so that i can profit very well. A good example will be the stocks I bought when the stock market is up and then sold it when it is going down. If only I have waited for the next up trend of the stock market, I could have profit handsomely. This and other matters are kept in the learning vault which were
safely stuck in the corner of my mind.

Today is a bloody red Monday and it reminds of the fundamentals of the stock market. It will slide down further I think until it will reverse back to the up trend. Maybe tomorrow it will go up but nobody knows actually. What I know is that when the stock market begins to slide down, it will slide down further. Now, I will wait for further down moments of the stock market until it bottoms up. Actually, I am just predicting it because of the current negative global issues surrounding our world. Once it reaches the threshold of the bottom and signs of recovery are there, I will start to plunge in. My plan is to buy a big bulk of it with my monthly savings not yet tied in the stock market and then sell it in the last quarter.

Horse+Running+Without+JockeyI know it will go down but I will not touch my current portfolio just to avail of the bargain currently we have in the stock market. I will stick with them until the opportunity will come
in the last quarter.

Yes, I'm holding all my horses now, patiently tugging along with other riders until that final turn where I am about to take my stride a notch higher than the previous turns.


"There are risks you cannot afford to take and there are also risks that you cannot afford not to take".

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