Good Question, tough answer

    Investment Question

    Posted by johnc on 12th of Aug 2011 at 07:35 pm

    Most of us here prefer to try to stay with the market trend in one way or another.  The main difference between most of us is the time frame that we trade in to the strategies that we use to try to capture profits.  So in that sense most of us here would prefer not to be in stocks when they are moving down unless we are shorting them or playing short counter-trend moves.  

    Personally, I would not like to be in dividend stocks, defensive stocks or growth stocks in a bear market.  If you are a new investor my advice is to watch Matt's long term and other signals and go to cash when we are in downtrends.  It's not exciting but not losing money is the most important rule of investing.  Making it is secondary only after you don't lose it.

    Making 1/2 percent on your money is always better than losing 20%.  Besides your money buys a lot more stocks  at the bottom of a bear market.  But in the mean time protect it.

    For now, start learning.  You're at the right place.

    john

     

     

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