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Excellent time to get into stock market

atreides

Graduate Student
Joined
7/4/08
Messages
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With the stock market taking a nose dive and shedding its value...I believe this is a good time to get in and buy up stocks on the cheap...I had the opportunity to participate in the CNBC million dollar portfolio challenge this summer, and after trading on real stocks with virtual money for three months, I believe that the real thing won't be as different..In the second month my portfolio rose by 20% a week.... Bottom line, I frankly believe this is the right time to jump into the market.
 
just imagine..somebody who entered the market yesterday, they are down 7% in one day ---and give them this advice..not sure they will agree with you...I feel it is tough to perfectly time the markets..and entering a market will depend primarily on the investor's current protfolio.
 
Subramaniam said:
just imagine..somebody who entered the market yesterday, they are down 7% in one day ---and give them this advice..not sure they will agree with you...I feel it is tough to perfectly time the markets..and entering a market will depend primarily on the investor's current protfolio.
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Yes ,.true,...but look at history...the stock market always rebounds...it is difficult to time when the market will hit rock bottom...If I got into the market yesterday, and lost 7%, those losses are only on paper..when the market rebounds i'll be celebrating christmas coming early..but if I get out the losses are locked in...I'm thinking long term here.

since it has gotten this bad , i believe the storm is almost over...In investing, you first have to decide how much risk you're willing to expose yourself to,..
 
atreides said:
Yes ,.true,...but look at history...the stock market always rebounds
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Have you ever heard of day traders in the 1990s? You should read a little history about how they all lost their shirts since the market "always rebounds".

Remember, the market can stay irrational longer than you can stay solvent.

Are you in it for the long term? You're talking about trading, not buy-and-hold investing. Those are mutually exclusive.
 
In the second month my portfolio rose by 20% a week.... Bottom line, I frankly believe this is the right time to jump into the market
Click to expand...

Even a broken clock is right twice a day.
 
I am the proud owner of a large scar in my right hand after catching numerous falling knifes during the Nasdaq days!! As my right hand is scared, I tend to use my head more then my hand when trading which after some time and tribulation has helped my trading performance. Remember the saying, “there are bold traders and there are old traders, but there are no old bold traders”. This saying has never being more valid then in our time of 20:1 futures leverage or 100:1 currency positions.

Instead of guts and glory, or blind guesses, use your skills to statistically analyze the market and there just might be a happy ending for you too! I am very proud of the postings of the Baruch MFE people, it certainly shows a level of market understanding that the talking heads and most visitors to the web site don’t have.
 
A famous line related to the thread: "Don't try to catch the falling knife"

If you are in the market at the moment and even after 70-80% drops, you still feel confident about the stock, you don't need to exit. However, you need to consider that investment lost completely. Basically consider that price goes to 0 and you don't need the cash.
This is the kind of investors that can still stay in the market at this moment.
 
Just for perspective:

Posted Oct 10, 2008 02:40pm EDT by Aaron Task in Investing, Recession

-- From 1909 to 1919, the Dow was essentially flat for 13 years.


-- After peaking in 1929, the Dow didn't make a new all-time high until 1957, nearly 30 years later.

-- From 1965 to 1982, the Dow was essentially flat for 16 years.
In other words "it takes time" to recover from the kind of drops occurring now, Roque says.

If there's any solace in this grim tale is that's the Dow and S&P are now back to 1998 levels, meaning we're 10 years into the latest period of prolonged market malaise.
 
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