Now is the time to buy stocks
By bostonphil
@bostonphil (4459)
United States
August 8, 2011 11:13pm CST
Everyone knows the stock markets plunged today and I mean plunged. All over the world, stock markets plunged, thanks to The United States and its political conflicts between Democrats and Republicans.
They say that there is a silver lining in every cloud. And the good news is that this may be the time to invest in stocks.
When the stock market plunged a few years back, I took a deep breath and bought some stock. In some cases, I did real well. But you never know. You are taking a chance. You might make a lot of money or you might lose a lot.
There may be some bargains out there. But here are some tips: Do not invest any money that you can not afford to lose. Be prepared to lose your money. You might not, but be prepared, just in case.
Do your research. There are some great companies out there. Their stock is probably going to temporarily go down and maybe way down but they will probably come back up. And maybe way up.
Finally, if you have a weak stomach, you might not want to invest. It is not for persons with nervous stomachs. You have to be tough to take the ups and downs.
Myself, I am considering adding to my portfolio. I will be watching the market this week and deciding what I might like to buy, if anything. I am not going to recommend any stocks just in case I make a bad decision. I do not want to take any mylotters with me.
1 person likes this
7 responses
@scheng1 (24650)
• Singapore
9 Aug 11
Hi Bostonphil, I am watching the stock markets very closely too.
I may want to sell my silver bars, and invest in stock market.
When the share price increases in the future, and gold and silver prices drop, I can do the reverse.
I think that is a better way of making money.
It is hard to find two different assets heading in reverse direction.
Since precious metals and stock markets head in opposite direction, it is a good match for growing money.
2 people like this
@bostonphil (4459)
• United States
9 Aug 11
I wish that I had bought some gold years ago. I know people who did. Buy stocks and buy gold. When stocks go down, gold goes up. It sounds like a win-win situation.
@rappeter13 (8608)
• Romania
9 Aug 11
I wish you all the best with your investment and maybe you will do some great money. But in order to invest, you need to have lots of money, to be able to buy huge amount of stocks. I would invest myself, just I lack of money and usually I lack of inspiration. However, I wish you to have success with your decisions of buying stocks.
1 person likes this
@rappeter13 (8608)
• Romania
10 Aug 11
It means that you have made some inspired investments during the years. I don't know where to search for about a company's predicted evolution.
As for small investments, they are okay, but if you make small investments and you haven't made inspired acquisitions, then you cannot build bigger investment funds.
@bostonphil (4459)
• United States
9 Aug 11
You really do not have to have a huge amount of money to make some money. I am with an on line broker and am charged $7 total for each trade whether I buy or sell one share or 100 shares. It is still only $7.00 per trade.
I am a small investor who can only afford to purchase small amounts. Yet, I have made some good decisions. For instance, when the market crashed a few years back, I bought 20 shares of a stock for $22 a share. It later went up to about $70 a share. if I had sold it, I would have made a few hundred dollars. I still own it but I am afraid to look right now.
Even a small investor can make small amounts of money. But you can also lose your money to. You need to be careful.
@AgentGulaman (3546)
• Philippines
10 Aug 11
I think everything starts out in small things. Being a small investor, you should try ot accumulate your earnings and compound it with what you already invested. Einstein once attested that compounding is very powerful. That is how those big investors started. Much like pooling out money to make a fund. Just start buying little by little of your favorite stocks and gain ground with that company's stock. This will be successful if you really know the company's fundamentals and you have a lot of trust in their capability to grow.
@bostonphil (4459)
• United States
9 Aug 11
Yes, you need to do your homework before investing. The stock market opened today higher as expected. I have not checked it since. I think investors are waiting for Bernake to speak. I think that Congress is going to investigate S&P for the downgrade. And I think that they should. Anytime you have the power to throw the entire world into turmoil and you use the power to do that, I think that there should be an investigation.
@DoctorDidi (7018)
• India
9 Aug 11
Yes, it is the optimum time to invest in stocks if you have the money.
1 person likes this
@bostonphil (4459)
• United States
9 Aug 11
Well, as I said in the response above, a small investor can make a little money and it can build if you make good decisions. But, if you make bad decisions, you might lose most of your money. You need to be cautious. You need to do research. And do not invest money that you can not afford to lose. You should never invest money that is needed for rent, food, etc. etc. etc.
@katrinapaz (2436)
• Philippines
10 Aug 11
thank you for your inputs boston phil. i have been wanting to invest my money on stocks since i have known about it but then when the news broke out about it plunging i was having second thoughts. i will watch the market carefully from now on and i will make sure that i will harden my stomach for any ups and downs that it will take me.
1 person likes this
@bostonphil (4459)
• United States
10 Aug 11
Time to buy is when stocks plunge but be wise about what you buy. Do your research but still be prepared that you could lose your money. If you can not afford to lose your money, don't invest it.
@AgentGulaman (3546)
• Philippines
10 Aug 11
Yes, buy low sell high. I've been monitoring the stock markets recently too and the dipping of the US market really affected our stock market in here too. But I am carefully watching the situation now. I don't want to get caught and buy stocks at the middle of the downturn. When the uncertainty clears out, I will plungin into the market again. Also, I am still trying to save up some more to be able to buy more stocks that get low. I will go for blue chip stocks as their prices will be at bargain with today's conditions and in my opinion will surge back up. I hope my money is already available when the things are slowly picking up for the stock market to go shopping at stocks on bargain. I still have some securities invested in and I hope that those securities also bounce up again once more as I cannot do anything about it because I don't want to sell at losses too. Any way, I think they can get back up once again. The emotions of uncertainty really caught up the investors. I am still sticking with my plan because I have carefully researched on where to invest that's why I am not worrying. I hope that the world economy will get better after I buy those bargain stocks away!
1 person likes this
@bostonphil (4459)
• United States
10 Aug 11
Sounds like you have a good head on your shoulders and that you know how to invest in the stock market. I am relatively new to the process and I have made many mistakes on my road to learning. But, I am learning.
@AgentGulaman (3546)
• Philippines
10 Aug 11
I am also relatively new in the stock market. I just read tons of resources regarding it before I went in for the plunge.
I do have my fair share of mistakes in it but now I am getting the hang of it. You are right that you should only invest the money that you can actually lose. That is the main thing with volatile securities. Also, if you are the worrier or the one who can't stand losses, then the stock market is not for you. I still got a lot to learn about stocks and I really don't have time to do hardcore stock trading that's why I choose to be a growth or value investor in stocks. Good for us that we are aware of the stock market as an instrument to accumulate money and I hope we get good gains from our portfolio.
I do have my fair share of mistakes in it but now I am getting the hang of it. You are right that you should only invest the money that you can actually lose. That is the main thing with volatile securities. Also, if you are the worrier or the one who can't stand losses, then the stock market is not for you. I still got a lot to learn about stocks and I really don't have time to do hardcore stock trading that's why I choose to be a growth or value investor in stocks. Good for us that we are aware of the stock market as an instrument to accumulate money and I hope we get good gains from our portfolio.
@mensab (4200)
• Philippines
9 Aug 11
i am grateful that you presented yourself as a case in point. i have been meaning to put some investment in the stock market, but i am always beaten by my anxiety and uncertainty. well, your discussion and statement clarified some of my anxieties. i will not put any money that i am not prepared to lose. but that's the reason why i am putting money because i want to get more. thanks for the valuable tips.
@bostonphil (4459)
• United States
9 Aug 11
Do your homework. Learn about the market. A small person can do well. My bus driver has made some money investing in stocks. You do not have to be wealthy or a big shot to make money in stocks. It is an opportunity for the small person but you have to do research and be able to take the down times. And most importantly, do not invest any money you need for basic survival. If you can not afford to lose it, do not invest it.
