shatteredglen
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Stocks have been plunging and is it a really good time to buy them?
Any tips on a specific stock or share to buy?
Any tips on a specific stock or share to buy?
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Stocks & Shares
- Thread starter shatteredglen
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No tips, but if you have spare cash and holding power, you can start nibbling.
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Why we BUY HIGH and SELL LOW?
Don't panic! The bad news is I have absolutely no idea what the market will do in the short-term, nor does anyone else. The good news is that I'm 100 percent confident that:
• The market is a great long-term investment.
• The ups and downs of the market impact our financial futures a whole lot less than our reactions to it.
Unfortunately, we seem unalterably programmed to buy high and sell low. And even though history shows us time and again the error of this, we keep doing the same thing and expecting a different result.
The current crisis in the market, like almost all of them, has its roots in how we invest. It was incredibly easy ten months ago to say that we have a high tolerance for risk. We had just seen our stock portfolio nearly double and our international stock portfolio nearly triple. With such a whopping gain, one would think we would surely be able to handle a small 15 percent pullback, right?
The truth is that most of us are fair weather investors. Our tendency to be risk tolerant in good times, and risk averse in bad times, causes us to feel a bit bullet-proof. The result is getting into stocks when the market is up, and doing the traditional "panic and sell" when it turns downward.
It's easy to consider yourself an investor in good times, but it's the down markets that separate the real investors from the speculators. An investor understands that, after many up years in the market, a pullback is just part of the game. It's okay to feel the pain as long as you don't let it drive you to panic. As much as I hate to admit it, I look at my own portfolio daily for some reason I'll never be able to explain. I feel your pain, but I know my instinct to sell is dead wrong.
An investor needs to understand and have faith in the fact that capitalism works. Not to mention the fact that in the history of all stock markets, it has only lost value a couple of times over a ten year period. Because rebalancing is a critical part of one's investing, now is the time to reallocate more toward equities, as long as one had a proper asset allocation strategy in the first place. After all, it's better to buy things on sale, isn't it?
If you can't sleep at night wondering how much more stocks will fall, then the stock market was never right for you in the first place. Moving in and out of the market is likely to give you a low return.
On the other hand, if you can accept that bear markets are a necessary part of stock market investing, then look at this as a buying opportunity. If the market goes down further, it's an even better buying opportunity.
In the words of Warren Buffett, "Be fearful when others are greedy and greedy when others are fearful." That may be easier said than done, but it's good advice.
In summary, Buy Fear and Sell Greed.
Don't panic! The bad news is I have absolutely no idea what the market will do in the short-term, nor does anyone else. The good news is that I'm 100 percent confident that:
• The market is a great long-term investment.
• The ups and downs of the market impact our financial futures a whole lot less than our reactions to it.
Unfortunately, we seem unalterably programmed to buy high and sell low. And even though history shows us time and again the error of this, we keep doing the same thing and expecting a different result.
The current crisis in the market, like almost all of them, has its roots in how we invest. It was incredibly easy ten months ago to say that we have a high tolerance for risk. We had just seen our stock portfolio nearly double and our international stock portfolio nearly triple. With such a whopping gain, one would think we would surely be able to handle a small 15 percent pullback, right?
The truth is that most of us are fair weather investors. Our tendency to be risk tolerant in good times, and risk averse in bad times, causes us to feel a bit bullet-proof. The result is getting into stocks when the market is up, and doing the traditional "panic and sell" when it turns downward.
It's easy to consider yourself an investor in good times, but it's the down markets that separate the real investors from the speculators. An investor understands that, after many up years in the market, a pullback is just part of the game. It's okay to feel the pain as long as you don't let it drive you to panic. As much as I hate to admit it, I look at my own portfolio daily for some reason I'll never be able to explain. I feel your pain, but I know my instinct to sell is dead wrong.
An investor needs to understand and have faith in the fact that capitalism works. Not to mention the fact that in the history of all stock markets, it has only lost value a couple of times over a ten year period. Because rebalancing is a critical part of one's investing, now is the time to reallocate more toward equities, as long as one had a proper asset allocation strategy in the first place. After all, it's better to buy things on sale, isn't it?
If you can't sleep at night wondering how much more stocks will fall, then the stock market was never right for you in the first place. Moving in and out of the market is likely to give you a low return.
On the other hand, if you can accept that bear markets are a necessary part of stock market investing, then look at this as a buying opportunity. If the market goes down further, it's an even better buying opportunity.
In the words of Warren Buffett, "Be fearful when others are greedy and greedy when others are fearful." That may be easier said than done, but it's good advice.
In summary, Buy Fear and Sell Greed.
Just sold my Stupid BArclay Bank shares lost $7k fuck up bank...going bankrupt soon...
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Anyone on here heard of Herd Instinct? NEVER follow it...
STOP LOSS in stock trading
When you trade/invest, it is prudent to put in place a STOP LOSS. You want to do that becos you owe it to your family and yourself to protect your trading/investment capital.
Most savvy traders/investors know the importance of a CUT LOSS strategy and usually after they got mauled by the Bear.
But it is equally important, if not, more important that when you are sitting on profits and you are riding an uptrend or upwave, you must also put in place a STOP LOSS for your profits. Likewise, you owe it to your family and yourself to protect and realise your profits before the Bear erodes it or even wipe it out and you feel like kicking yourself for not taking the money when it was staring at you on the table.
So bros, have a STOP LOSS to protect your capital. But just as important, have a STOP LOSS to protect your profits as well and take them before they are gone.
I believe many of us here had been thru the process and experienced this before (getting mauled by the Bear).
Many of us here graduated with titles such as "savvy" and "experienced" after paying exorbitant tuition fees to the Market.
When you trade/invest, it is prudent to put in place a STOP LOSS. You want to do that becos you owe it to your family and yourself to protect your trading/investment capital.
Most savvy traders/investors know the importance of a CUT LOSS strategy and usually after they got mauled by the Bear.
But it is equally important, if not, more important that when you are sitting on profits and you are riding an uptrend or upwave, you must also put in place a STOP LOSS for your profits. Likewise, you owe it to your family and yourself to protect and realise your profits before the Bear erodes it or even wipe it out and you feel like kicking yourself for not taking the money when it was staring at you on the table.
So bros, have a STOP LOSS to protect your capital. But just as important, have a STOP LOSS to protect your profits as well and take them before they are gone.
I believe many of us here had been thru the process and experienced this before (getting mauled by the Bear).
Many of us here graduated with titles such as "savvy" and "experienced" after paying exorbitant tuition fees to the Market.
<<
Don't panic! The bad news is I have absolutely no idea what the market will do in the short-term, nor does anyone else. The good news is that I'm 100 percent confident that:
• The market is a great long-term investment.
• The ups and downs of the market impact our financial futures a whole lot less than our reactions to it.
>>
how come you write so long article , never mentioned the word money management.
This is the tool to survival market crisis. If u allocate a percentage of your money and not all of it to equities according to your risk profile , hten you are prime for success when market go up or down.
Don't panic! The bad news is I have absolutely no idea what the market will do in the short-term, nor does anyone else. The good news is that I'm 100 percent confident that:
• The market is a great long-term investment.
• The ups and downs of the market impact our financial futures a whole lot less than our reactions to it.
>>
how come you write so long article , never mentioned the word money management.
This is the tool to survival market crisis. If u allocate a percentage of your money and not all of it to equities according to your risk profile , hten you are prime for success when market go up or down.
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Analyse shares with good dividends. Use the dividends to finance property loans. Use the rental received as income.
Majority of people with savings would use it to buy a house. It's not wrong, but calculating in terms of inflation, interest, economics, and how the rich play, buying shares is a better 1st option.
Example with 2 million. I can probably buy a condominium. Instead I use it to buy shares with good dividends. The dividends I got annually I use it to pay off bank loans on 2 condo properties. I rent out those 2 condos gettin monthly rental.
So instead of having only 1 condo, you can get to have 2 million worth of shares, plus 2 condos.
Majority of people with savings would use it to buy a house. It's not wrong, but calculating in terms of inflation, interest, economics, and how the rich play, buying shares is a better 1st option.
Example with 2 million. I can probably buy a condominium. Instead I use it to buy shares with good dividends. The dividends I got annually I use it to pay off bank loans on 2 condo properties. I rent out those 2 condos gettin monthly rental.
So instead of having only 1 condo, you can get to have 2 million worth of shares, plus 2 condos.
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Very Simple, I have always advocated buying our local shares that have a monopoly, like SMRT, where profits are protected by PTC which will increase the fares whenever profit not enough. Then you get dividends as well.
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I'm betting the STI to go 2,500-2,600 before moving in. I'm sure many of you are making from the bear market as well. I'm the long type, so just waiting on the sidelines.
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