Having the Guts to Buy in this Stock Market
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Things are still volatile on the stock market. Witness today’s rout, and the fact that Dow 10,000 was short-lived this week. While, overall, the trend is for a higher stock market, ordinary people get jittery with this kind of volatility. And it isn’t helping that one of the reasons the stock market is falling today is that Bank of America has reported billions in losses. However, if you can handle taking the plunge, now is a decent time to buy.
Whether you are looking at clean tech or biotech or blue chips, looking for individual companies to buy right now can be tricky. But if you do your homework, and have an eye for bargains, you might be in good shape. Here is what MSNBC writes about buying in this market:
The trick, of course, is spotting companies like these early and having the courage to take the plunge when you do. It helps to get your information from someone you can trust — someone who has the experience and resources and does the legwork. In other words, not from some yahoo on the phone.
Courage is something that you need anytime you are putting your money out there. There is always a risk of loss when you invest, and you need to know that you have the risk tolerance for whatever it is you are doing. You also need to avoid putting in money you can’t afford to lose.
Limiting risk with funds
You can limit risks (but not eliminate them altogether) with the use of funds. Index funds and ETFs can provide a way for you to get in the market when things are still reasonably cheap, but limit your risk by ensuring that everything isn’t riding on a single investment. It is still necessary to have courage, though. You have to be able to ride out the down cycles, and not get too upset about times when the stock market heads lower.
In the end, investing is about having the guts to try and make a higher return on your money, even if it means risking losing your capital.
Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss. You are responsible for your own investment decisions and any loss that may result from your decisions.
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