Now Is Not The Time To Buy Stocks
Posted on November 30, 2007
Filed Under Profitable Trader |
Why get involved in the market? Some people think being involved in the stock market is like gambling. Of course these people would be misinformed. It is no secret most people lose money in the stock market. That is because most of these people watch CNBC and hear some analyst tell them to run to their computer and buy Home Depot, or Best Buy. Of course they do this and they end up losing money. They do this a couple of times and, losing money every time, decide that the market is random and there is no way they can succeed. Again, these people would be misinformed.
There is a way to succeed in the market, but it is not by listening to so-called analysts. If you own 1000 shares of a stock, and you don’t like the way the chart looks or the fundamentals, you sell it. Most likely you will never get out at the exact top but you still get out at a good price, hopefully making a profit. When an analyst comes on television shouting that now is the time to buy, especially when the market is in a downtrend or in a correction like the one we are in now, you must realize that he probably has an agenda. Mr. Mutual Fund can’t sell his 1,000,000 shares as easily as you sell your 1000. So what does he do, he gets an analyst to come on television to tell the world how good this stock is so he will have buyers for the shares he is trying to dump. You must do your own due diligence if you want to succeed in the market. Period.
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