Wow what a day!
I have to talk about what happened today to explain what may occur when things go wrong. Yes the stock market was weak at the beginning of the day due to investors concerns about the European debt market, but later in the day a trader mistakenly put in a order to sell $15 billion worth of stock when he meant to sell $15 million. This caused the Dow and the rest of the indices to plummet all at once. Eventually, the losses were minimized from the low of the day, but stuff like this doesn't occur very often. This is when people need to go out and find stocks on the cheap and buy them on days like this. This day was a great opportunity for investors to get in at great prices. From one of my first posts I mentioned buying on weakness and this is one of those days. Yes a lot of the trading that occurred today will be cancelled due to the traders mistake, but it's a perfect example of what could happen at any given day. That's why as an individual investor you need to be prepared for days like this. Don't be afraid! Just buy the stocks that you have done your research on and are confident in their potential to increase in value. Usually your first purchase of a stock seemingly goes down. You never can be perfect on when to buy a stock. That is why you should buy incrementally. For example if you want to by 100 shares of a stock buy 25 shares to start then see what happens if it goes down more you still have money to invest more. That way lower prices are to your benefit. Also, companies that pay a dividend are always good in extreme down days because that is where a lot of the fund managers tend to put their money in for the short term until the market becomes somewhat stable.
I will continue with my evaluation of stocks that I like from the (Prediction Game) Cont... I have Intel (INTC) and Caterpillar (CAT) left to discuss. Also, for people that are just starting to invest stay tuned as I will be discussing topics for individuals that are just beginning to learn about investing and the stock market.
Thank You,
Clay-
Where do I start to get into the market.
ReplyDeleteHow much money would I need to get into the game??
Bill,
ReplyDeleteYou will see my response to your questions in my lastest post. Thank You for your questions and showing interest in my blog.
Clay-
Clay,
ReplyDeleteI like your blog. It keeps me thinking about what other choices I might have for investing. Keep up the good work.
Thank You! I'm happy this blog keeps you thinking about investing. That is my mission to help others become successful investors. I'll keep the information flowing!
ReplyDeleteClay-