Thursday, June 21, 2012

Market Update 6-21-12

Today’s just one of those days in the market.  Just ride it out today and wait and see how we open tomorrow.  The markets are selling off today, thankfully my trades are holding on to support levels and have actually bounced up.  That’s also an important lesson: buy well-known, reputable companies that are heavily traded and are vanguards in their industry.  These stocks always tend to hold up better during these big sell-offs.

If you have stop-losses on any stocks make sure you really want to keep them because days like today are usually an anomaly and stop-losses can actually go against you and end up costing you money.  It may be better to wait till tomorrow and see what direction the market takes.  

A great piece of advice I heard today was: “panic is not an investment strategy.” The point is when markets go down it’s a good time to buy some stocks that have been too expensive.  Just wait till they start to make an upswing or have flat-lined and gone horizontal.  You want to make sure you buy the actual bottom not buy on the way to the bottom.

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