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as i understand it market crashes are compounded by stop-losses ( and they may be a perfect option for that investor ) and forced selling by margin calls ( relating to assets inside and outside the markets )   now leverage is a two-edged sword and some are tempted to over-leverage

but when is the market high ( sure i expect a 30%+ retrace , but i have often been wrong ) the market ( ASX may easily climb another 25% before deciding to test investor support )   and that is the quandary of every new investor ( buy now , chase the departing train or try catching falling knives )

to me eye the largest cap. stocks are usually the most liquid so are most easily sold in a panic , that only wrecks their market cap.   not the business fundamentals ( unless they are running high debt levels and the lenders get nervous )

now hopefully a new investor buying now , keeps some reserve cash , or has a nice regular income from another source , to adjust the portfolio as opportunities appear

PS my crystal ball is broken , i just cling to the raft and collect flotsam and jettison that seems useful at the time

cheers

<blockquote data-quote="divs4ever" data-source="post: 1255567" data-attributes="member: 86149">as i understand it&nbsp; market crashes are compounded&nbsp; by stop-losses ( and they may be a perfect option for that investor )&nbsp; and forced selling&nbsp; by margin calls ( relating to assets inside and outside the markets )&nbsp;&nbsp; now leverage is a two-edged sword&nbsp; and some are tempted to over-leverage &nbsp;but when is the market high&nbsp; ( sure i expect a 30%+ retrace&nbsp; , but i have often been wrong ) the market ( ASX&nbsp; may easily&nbsp; climb another 25% before deciding to test investor support )&nbsp;&nbsp; and that is the quandary of every new investor&nbsp; ( buy now , chase the departing train or try catching falling knives )&nbsp;to me eye&nbsp; the largest cap. stocks are usually the most liquid&nbsp; so are most easily sold in a panic&nbsp; , that only wrecks their market cap.&nbsp;&nbsp; not the business fundamentals ( unless they are running high debt levels&nbsp; and the lenders get nervous )now hopefully a new investor buying now , keeps some reserve cash&nbsp; , or has a nice regular income from another source&nbsp; , to adjust the portfolio as opportunities appear &nbsp;PS my crystal ball is broken&nbsp; ,&nbsp; i just cling to the raft and collect flotsam and jettison&nbsp; that seems useful at the time &nbsp;cheers</blockquote>

[QUOTE="divs4ever, post: 1255567, member: 86149"] as i understand it market crashes are compounded by stop-losses ( and they may be a perfect option for that investor ) and forced selling by margin calls ( relating to assets inside and outside the markets ) now leverage is a two-edged sword and some are tempted to over-leverage but when is the market high ( sure i expect a 30%+ retrace , but i have often been wrong ) the market ( ASX may easily climb another 25% before deciding to test investor support ) and that is the quandary of every new investor ( buy now , chase the departing train or try catching falling knives ) to me eye the largest cap. stocks are usually the most liquid so are most easily sold in a panic , that only wrecks their market cap. not the business fundamentals ( unless they are running high debt levels and the lenders get nervous ) now hopefully a new investor buying now , keeps some reserve cash , or has a nice regular income from another source , to adjust the portfolio as opportunities appear PS my crystal ball is broken , i just cling to the raft and collect flotsam and jettison that seems useful at the time cheers [/QUOTE]

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