The yoyo game that market is playing now is another good exemple of market traps. Very often after a huge drop will you see a sudden come back only to go down the day after.
So with that in mind, stay focus on stock VALUE. For example WFC is a steal at today's price even if it was to go down by another 5%. If you have a 2-3 years planning, this could be the occasion to take your time and invest slowly: you want 100 shares of WFC? Then go ahead and buy 50. Yes you may have to put in another 10$ in fees but could give you another shot at the can if stock goes down again. If it goes up suddently: WAIT before buying the other 50. It could well be another trap.
Do not expect the market to be up tomorrow with a 400 point rally and keep it this way forever... It may well rebound tomorrow if employment data is at about the same level (400k-415k) but if for any reason it was to be over 450K get ready for another HUGE drop as it would be almost a confirmation of another recession or double dip recession.
Personnally i do not think we are heading toward another recession but actually this is a market of fear. Remember that whenever there is fear get greedy and the oppsite is also true.
NEVER INVEST MORE THAN YOU CAN AFFORD TO LOSE.
So with that in mind, stay focus on stock VALUE. For example WFC is a steal at today's price even if it was to go down by another 5%. If you have a 2-3 years planning, this could be the occasion to take your time and invest slowly: you want 100 shares of WFC? Then go ahead and buy 50. Yes you may have to put in another 10$ in fees but could give you another shot at the can if stock goes down again. If it goes up suddently: WAIT before buying the other 50. It could well be another trap.
Do not expect the market to be up tomorrow with a 400 point rally and keep it this way forever... It may well rebound tomorrow if employment data is at about the same level (400k-415k) but if for any reason it was to be over 450K get ready for another HUGE drop as it would be almost a confirmation of another recession or double dip recession.
Personnally i do not think we are heading toward another recession but actually this is a market of fear. Remember that whenever there is fear get greedy and the oppsite is also true.
NEVER INVEST MORE THAN YOU CAN AFFORD TO LOSE.
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