Who’s day tradin’ with me?
I don’t day trade but I did by some stock today for companies I already own. I couldn’t ignore their low P/E and their extensive cash on hand any longer.
It was an opportunity to add to a 3-5 hold and at bargain prices.
Will it work?
Maybe not in the short term but it will be sweet in the mid to long term.
Some company’s stock is now selling for less than the cash they have in their bank.
Irrational.
I’ve been buying stock all week! It’s crazy not to. Many stocks are down 90% from a year ago. How can you ignore the fact that they’ll eventually get back up?
Atta way, announce this all over the world, and the fear and panic will subside,
and we’ll all be rising in the boat.
“a rising tide floats all boats…”
thanks guys. 
Mutual fund statement came in today, lost thousands of dollars again for this quarter, and you guys are telling me to buy more!:shock:
Marcel 
You bet! Ever heard of a sale. If all my money wasn’t tied up in mutual funds already, you could bet I’d be buying more if I could. Remember, the best way to make money in the stock market is to buy low, and sell high. Now its low, and it’s time to buy.
That’s how it goes Marcel! You average down your stocks so they balance out and you make your money back faster.
Hey Mark, thanks for the tip.
Now could you lend me 10 grand so I can buy some more on Tuesday?:mrgreen:
Marcel :)
LOL… I could, but I’d have to sell to do it.
I haven’t been in the market in 21 years and I’m going back in for the first time on Tues morning. See ya there!
Mark, if you had bought at the “low” of 10,000 (DJIA) ypu would have been 15-20% down as of today, of course if you bought at 9:30 this morning 780 (DJIA) you’d be 9% up.
2 questions
- What is low
- Do you feel lucky punk, well do ya
Interesting fact of the day, exactly 1 year ago today the DJIA was over 14,000, is American business realy worth 60% of last Octobers valuation?
Regards
Gerry
So what’s good? Say a fella has 5k or so to throw at stocks. What would you recommend he buy?
Unless he has a real strong stomache, I’d recommend a position in diapers
Cause the current market conditions are going to be “TWITCHY” :twisted:
Regards
Gerry
Depends on if you’re looking long term or not. Tech stocks like Microsoft, Apple have lost over 100% in the last month or two. I’m buying lots of Fannie Mae and Freddie Mac. I don’t think the government would ever let them sink and right now they’re $1 a share. Last week they were 25 cents a share
Be careful. Stocks down 90% are for a reason.
For example:
GM is down over 95% from it’s high in 2000 and it’s P/E is around 8 but that doesn’t mean it’s a good buy.
To many other factors that might make it go to “zero”
It’s going straight up on Tuesday folks, and remember where you heard it.
Low is when it has gone down, and high is when it is on an up. Now we are in a downward sweep, so it is an all round good time to buy (assuming you have cash to buy it with.:mrgreen:)
“Buy low, sell high” isn’t rocket science…
The rocket science is figuring out when those times are.
For example, last week I lost over 15 large, in one day (on paper.) Now if I sell now, I have lost that. If I hold, it will go back up and I will be even, or better. If I had cash on hand to buy more today, I would actually save 15 large over what those same stocks would have cost me a week ago. So today, those same stocks are much cheaper than they were a while ago, and are “on sale.”
When you buy stocks (or in my case mutual funds), don’t think of it as a savings account that’s balance goes up and down. Think of it as buying a widget. If that widget has a larger value than what it costs, or it has a good potential of gaining a larger value in the future, buy it now. If you think you’ve made a fairly good return on that widget, then sell it for a profit, before it looses its value for some reason.
You don’t want to sell your house for less than you paid for it. So you don’t (generally.) Likewise do the same thing with the businesses you buy. Buy because they are a deal, or because they have a good potential for profit. Once you have gained a reasonable profit from them, sell them.
That’s why it’s a good idea to diversify… I personally really like mutual funds. They are easy to understand, and remove a lot of the risk you would otherwise take by buying individual stocks.
Some stocks are down 90% for a reason. Others are just down because everyone freaked out and is selling like mad. The work is in finding which those are!