Market in Correction Phase
The stock market has been going up and down last month. Some stocks are going down after being up in the month of April. Most of the traders and investors took their profit in the month of May. They sold most of their shares in the month of May. Now, that most of the investors and traders sold their shares, the market is down. Next week we will try to check the stocks that are good to buy while their price is down.
Buy and Hold Forever?
Another one to look at is to hold your stock for years until you need it. In my case, I bought stocks that I intend to hold until June 2014 when the turnover of the property I bought will materialize. I have three years to play with the money and grow it until June 2014, when the property my wife and I bought will be turnover. If I have 100,000 pesos, by the time June 2014 will come, my money could have been 200,000 pesos already. Enough to pay for the property we bought if the price of the property is 200,000 pesos. Stocks are just going up and down in their normal cycle. For three years, the stock will go up and down but the general trend will always be up. For example, the price of the fish I bought is 10 pesos during down market and then it goes up to 15 pesos when the market is up, the next cycle will be down again and the price of the fish may go to 12 pesos. If the market goes up, the price of the fish will go up also and may exceed the previous high of 15 pesos per fish. That's how the stock market works. It is always going up as a general rule.
Stock is Always Going up and Down
No matter what crisis will happen in the world or in our country, the stock will always go up. Remember the financial crisis in the US? Our stock market went down like a man punched by Manny Pacquiao. It is so drastic that most of the investors stay out of the stock market for almost a year. It is during the crisis that we need to look for stocks being sold at a bargain price, because whether you like it or not, the stock market will go up. It's a cycle, a cycle that is absolute in it's nature.
Buy Signal!
This month, we are having a correction, this is the time to buy stocks. But next week, my mentor will give us an update of the stocks to buy. So just hold your cash for the meantime, wait for the buy signal and voila!, we will time the market.
Happy investing!
The stock market has been going up and down last month. Some stocks are going down after being up in the month of April. Most of the traders and investors took their profit in the month of May. They sold most of their shares in the month of May. Now, that most of the investors and traders sold their shares, the market is down. Next week we will try to check the stocks that are good to buy while their price is down. Be Fearful when Others are Greedy, Be Greedy when Others are Fearful!
Most of the traders and investors are afraid and fearful when the stocks are down. As a value investor, when
the stock market is down and most of the traders are fearful, it's time to be greedy. It is during this time that we will find the price of some shares as attractive and at a discount. When we buy a share when the market is down, we will have more room for profit. For example, you buy a fish worth 10 pesos when the market is down when in fact the correct price of the fish in a healthy and competitive market is 15 pesos, you can easily have that 5 pesos profit when the stock market started to go up. The rule is always buy when the stocks are low and sell when it is high. That is the time when you create profit from the stock market. Now, imagine if you bought 20,000 fish when the market is down, easily you can have a 100,000 pesos profit.
Most of the traders and investors are afraid and fearful when the stocks are down. As a value investor, when
the stock market is down and most of the traders are fearful, it's time to be greedy. It is during this time that we will find the price of some shares as attractive and at a discount. When we buy a share when the market is down, we will have more room for profit. For example, you buy a fish worth 10 pesos when the market is down when in fact the correct price of the fish in a healthy and competitive market is 15 pesos, you can easily have that 5 pesos profit when the stock market started to go up. The rule is always buy when the stocks are low and sell when it is high. That is the time when you create profit from the stock market. Now, imagine if you bought 20,000 fish when the market is down, easily you can have a 100,000 pesos profit.Another one to look at is to hold your stock for years until you need it. In my case, I bought stocks that I intend to hold until June 2014 when the turnover of the property I bought will materialize. I have three years to play with the money and grow it until June 2014, when the property my wife and I bought will be turnover. If I have 100,000 pesos, by the time June 2014 will come, my money could have been 200,000 pesos already. Enough to pay for the property we bought if the price of the property is 200,000 pesos. Stocks are just going up and down in their normal cycle. For three years, the stock will go up and down but the general trend will always be up. For example, the price of the fish I bought is 10 pesos during down market and then it goes up to 15 pesos when the market is up, the next cycle will be down again and the price of the fish may go to 12 pesos. If the market goes up, the price of the fish will go up also and may exceed the previous high of 15 pesos per fish. That's how the stock market works. It is always going up as a general rule. Stock is Always Going up and Down
No matter what crisis will happen in the world or in our country, the stock will always go up. Remember the financial crisis in the US? Our stock market went down like a man punched by Manny Pacquiao. It is so drastic that most of the investors stay out of the stock market for almost a year. It is during the crisis that we need to look for stocks being sold at a bargain price, because whether you like it or not, the stock market will go up. It's a cycle, a cycle that is absolute in it's nature.
Buy Signal!
This month, we are having a correction, this is the time to buy stocks. But next week, my mentor will give us an update of the stocks to buy. So just hold your cash for the meantime, wait for the buy signal and voila!, we will time the market.Happy investing!
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