Wednesday, February 6, 2008

Does this right time to invest in stock market?

Seems, that stock market looks like rollercoaster. Yesterday Dow los almost 400 points, today small down -65. Is this a right time to invest? What to buy? Do I sell short any stock?

All those questions are often we asking ourselves. I would think, that rule is very simple. It is always a good time to invest money, specialy when you in for the long term. But, there is always a big BUT, we don't have to invest all your money, just invest 20 % of your total today's funds. Why? best way to in stock market, is to buy on deeps, like yesterday. Most of the stock fell 4-8 %. Yes, they possible can go lower, but that's why we keeping rest of our fund.

What to buy? I really like this phrse : diversification in diversification, meaning, buy different stocks in diferent sectors. It's def. best right now to buy beat up sectors, like real estate, retails, etc. They can go lower, but we can buy them lower and play cost averaging game.
Do you homework, buy small amount, but don't create stupid trades, like buying 1 share. Buy at least 25 shares.

Do we short sale? Most of us are positive thinkers, and always hoping for better. I would suggest not to short sale any stock.

Market goes up we gain, market goes down we buy more. Long term investment always a winner.

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