Panic sellers? Or people sensible enough to have stop losses in place?The only thing I believe that has changed is that those who are panic sellers have panicked and sold (like myself) so hopefully if there is a drop it won't be quite as magnificent.
Alex, read the above and read it again.I differ on this one, losing money in times like these means that you have bought your stocks too dear and that is the worst thing you can do.
Anybody can deem themselves to be right by holding stocks for years and years - eventually the market is likely to recover above the price you paid. It does not change the fact that you were wrong in your entry.
I acknowledge however that 'value investors' operate with a long term perspective and will maintain a short term paper loss if they think the stock price is below its' intrinsic value. Bear in mind that stocks can get much cheaper very quickly, buying and blindly holding because they are at a discount to intrinsic value means nothing when the stock keeps going down, down and down.
Just mentioning this for the newbies, because many get caught in the 'it will eventually recover' trap. There is a difference to buying a cheap stock relative to 'intrinsic value' compared to buying a cheap stock because it's cheaper now than it was a year ago.
I differ on this one, losing money in times like these means that you have sold your stocks too cheap and that is the worst thing you can do.
Well... I have finished my buying for now, I have to start putting money aside again just in case the market goes to 3500 so I can buy more and even cheaper!
I differ on this one, losing money in times like these means that you have bought your stocks too dear and that is the worst thing you can do.
Anybody can deem themselves to be right by holding stocks for years and years - eventually the market is likely to recover above the price you paid. It does not change the fact that you were wrong in your entry.
I acknowledge however that 'value investors' operate with a long term perspective and will maintain a short term paper loss if they think the stock price is below its' intrinsic value. Bear in mind that stocks can get much cheaper very quickly, buying and blindly holding because they are at a discount to intrinsic value means nothing when the stock keeps going down, down and down.
Just mentioning this for the newbies, because many get caught in the 'it will eventually recover' trap. There is a difference to buying a cheap stock relative to 'intrinsic value' compared to buying a cheap stock because it's cheaper now than it was a year ago.
That's the spirit...this thread is full of people spruking sell sell sell, take the loss and learn, blah blah blah...the market will always be here, but it wont always be cheap.
Fortunes were made in the first GFC dip and fortunes will be made in this second dip.
Buy buy buy
You are hoping for QBE to bring a negative turn?
I think you are right, I vaguely remember something like that happening during either one of the big gfc falls or the tech bubble fall - the market just shut down for an hour or something.
Time to go to bed and read this weeks Eureka report for some more learnings.
It's a pretty interesting one this week!
woot.
Night all
That's the spirit...this thread is full of people spruking sell sell sell, take the loss and learn, blah blah blah...the market will always be here, but it wont always be cheap.
Fortunes were made in the first GFC dip and fortunes will be made in this second dip.
Buy buy buy
The first GFC dip top to bottom was 6,800 down to 3,100. Or 45.8%.
This second GFC dip top to bottom so far is 5,000 down to ~3,980. Or 20.4%.
So why is now the right time to buy? I am not saying it isn't, but I am asking why it is...
I have a simple investment philosophy...buy stocks when they are cheap and thus offering greater potential for profit..stocks are cheap now...since i cant pick bottoms or reversals im left with picking stocks that i think are cheap, i think stocks are cheap now.
Time to put this thread to bed for now?
DOW lift off with Saturn rocket, up +470pts overnight.
A day is a long time in the market....
I have a simple investment philosophy...buy stocks when they are cheap and thus offering greater potential for profit..stocks are cheap now...since i cant pick bottoms or reversals im left with picking stocks that i think are cheap, i think stocks are cheap now.
Plus i don't think things are as bad now as they were then, the Global financial system will not fail, sovereign debt will be restructured, lenders will take a hair cut, the BRIC country's will keep the commodity's boom and world growth going.
The yanks with cut spending and raise taxes eventually and the markets will come back and trade at around the top of the range (5000) at some point...and at that point the people who brought now will feel pretty satisfied with themselves and make good money...lest that's my experience from the first leg down.
Why don't you wait to see how low they can go, then buy back after they show some sustained signs of recovery?
Panic sellers? Or people sensible enough to have stop losses in place?
So you don't believe there has been any actual valid reason for selling?
If you believe that, then presumably you discount the possibility of further bad news out of Europe or the US prompting further significant sell off.
Alex, read the above and read it again.
Time to put this thread to bed for now?
DOW lift off with Saturn rocket, up +470pts overnight.
A day is a long time in the market....
What if you baught Gold yesterday
I still hold some gold and dont think that 1 good night on the dow means that you should sell out of gold straight away. In saying that I did not just buy gold in the last week
To me it looked like it 'came' for the second time yesterday. Usually that's not so premature. A third time could be pushing it, especially when the Dow is already up in the morning.What if you bought Gold yesterday? Is it a bad thing that the DOW went up for gold holders? I'm curious...
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