The market is basically moving sideways and is not the best
market to trade in. Reason being, the
market moves are not big enough to make enough money to pay for your commission
and make a decent profit. Plus you have
to have perfect timing in order to catch any movement in a stock in order to
make some money. There are ways to make
money when the market moves sideways but these are more sophisticated
trades. For beginning traders I would
definitely wait until there is a confirmation of the market’s direction before
getting into any positions. If you see a
stock that is moving on its own regardless of market conditions you may want to
take a position in it, but given the way the market responds to news and rumors
it is safer to just wait until there is more definition in the market’s
movement.
The best move to make at times like these is to buy dividend
stocks that pay you a dividend regardless of the market moves. I just got my dividend payment from ARR and
it feels good to be able to make money regardless of where the market is. It feels even better when I look at the value
of ARR and it is up 82 cents since I bought it (read my previous blog entry on
ARR).
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