Warning .... A Buying Opportunity is Looming on the horizon !

originally posted by: Azureblue
a reply to: smirkley

Thanks for explaning what dollar cost averaging is .

Not sure if you were being sarcastic so just to make sure, from wiki,...

investment strategy for reducing the impact of volatility on large purchases of financial assets such as equities. By dividing the total sum to be invested in the market (e.g. $100,000) into equal amounts put into the market at regular intervals (e.g. $1000 over 100 weeks), DCA reduces the risk of incurring a substantial loss resulting from investing the entire "lump sum" just before a fall in the market. Dollar cost averaging is not always the most profitable way to invest a large sum, but it minimizes downside risk.

en.m.wikipedia.org...

If anyone is wondering why I put this in this forum, because this is fair balance to counter the global economic crisis doom porn that permeates this forum unfairly during market corrections such as we are currently in.

Its fun to predict the end of the world, and this economic crisis is going to be big. But my experience, and several others, can show easily that it isnt going to be the end of the world. I guess we call it doom porn anti matter.

I wont get big points for this thread, but I will take real money to the bank. It may take a year or two. But I dont care. I am in for the long money.

a reply to: smirkley

I guess the question is do you believe it is a correction. If so what number will it land on. I've seen some say 13,000 so if you share that opinion wait.

Also if you think this is the start of something closer to 2008 than a correction. In that casechow low can all get and how long before a bounce back? Last week Fed days they have basically no more ammo.

It really comes down to what a person think is going on, how low it gets, and how long it last (how much time can you wait). Those would seem to deciede when the time is right for people.

Of course even during declines money can be made, just have to know where to do it.

I am doing the exact same, watching and waiting for the right time to smash that BUY BUY BUY button

I wish I knew how to trade, never really got into it.

I am now almost 2 years into my first engineering job and accumulating a significant amount of capital (at least I think it is significant) but do not know what to do with it.

Sitting in a savings account at the local credit union isn't doing much...

a reply to: Reallyfolks

Ya know, my guess is as good as anybodies, and I dont have a good record of cherry picking. A correction or a crash to me is a buy op. That is why in this scenario I dollar cost average with a weekly deposit. At least it will mitigate my loss if so, but will position myself to be regular buying when it returns. And I am comfortable saying it will. My 401k is natural dollar cost averaging by design with my weekly witholding.

It could very well be the crash of the century, taking years to recover. But I will not be scared out of the market. Even in 29 it eventually came back.

I offer no promises. I only am speaking from having been through many corrections and quite a few recessions.

a reply to: smirkley

It's the perfect time to.
I saw a company I have been watching that is into steel almost drop in half per stock... unfortunately I am just starting out on my own and have no money to invest, although it's good to watch the market for trends so who knows.

The floor traders had too much money in China. That was their mistake. Now they scramble lol.

But the other factors dont support a long term fallout.

Let them fix their shortsightedness.

BUY THE ABYSS!!!

originally posted by: smirkley
The floor traders had too much money in China. That was their mistake. Now they scramble lol.

But the other factors dont support a long term fallout.

Let them fix their shortsightedness.

What other factors?

a reply to: Reallyfolks

Several things have to fail to make a simple correction a true collapse. Right now this isnt the case. I cant name them all, I am not smart enough. But so far it is just Chinas devaluation and subsequent crash of their markets. It was long overdue anyway.

I will be holding or retaining the shares of stocks I already have.... (like maybe 50 combined shares of 6 corporations)

but I will not be purchasing any new shares even at this 10% price reduction, anytime soon....

there is another 20% or so correction yet to happen... Then I will think about buying $100. purchases of the ones I think will have a good return-on-investment

(intel with their mobile chip designed for self-driving cars is one I might well buy)---- my guess Intel will get back to that $80 share price in a short time because they can deliver as opposed to the other two chip makers who could not provide the necessary continuity of communication with multiple millions-of-vehicles as intel could do (sorry google & other aspirants)




hey smirkley , thanks for the positive nod.... a guy/person has got to try to outflank the movers-&-shakers just to keep pace

a reply to: St Udio

Sounds smart. You got a stable thought it looks like.

And thank you for the complement.

It is spy vs spy in this game. Market makers love to make money on doom n gloomers. A little panic can really make a car payment easy for them. I dont like giving them the benefit.

originally posted by: smirkley
a reply to: Reallyfolks

Several things have to fail to make a simple correction a true collapse. Right now this isnt the case. I cant name them all, I am not smart enough. But so far it is just Chinas devaluation and subsequent crash of their markets. It was long overdue anyway.

Ok, good luck. Hope you make a killing

Some of the biggest money making in history was done right after the 1929 crash.

If you can afford it, buying when the market is in full on crash mode is a spectacular way to enter the market or expand your portfolio.

In 1929, most investors had borrowed and were on margin calls, meaning that when the debt was called in and they couldn't afford to pay it, they lost everything. This made the Great Depression much longer than it should have been. Meanwhile, the richest Americans cashed in by buying that stock for pennies on the dollar.

Remember, for every loser that lost money by betting long there is a winner who made a fortune betting short.

Just like how in every real estate deal where someone bought at the top of the market, there's a shrewd investor who bought at the bottom of the market and sold high, which is why there should be zero debt relief for people underwater in their homes - it takes away all the risk in property buying and would just encourage people to do it again.

a reply to: babybunnies

Excellent points. Thank you.

originally posted by: smirkley

originally posted by: Azureblue
a reply to: smirkley

Thanks for explaning what dollar cost averaging is .

Not sure if you were being sarcastic so just to make sure, from wiki,...

investment strategy for reducing the impact of volatility on large purchases of financial assets such as equities. By dividing the total sum to be invested in the market (e.g. $100,000) into equal amounts put into the market at regular intervals (e.g. $1000 over 100 weeks), DCA reduces the risk of incurring a substantial loss resulting from investing the entire "lump sum" just before a fall in the market. Dollar cost averaging is not always the most profitable way to invest a large sum, but it minimizes downside risk.

en.m.wikipedia.org...

na mate I was't being a smart arse. I was just saying thanks and correcting my spelling of the word 'cost'

cheers

should I not just be putting my money into tear gas , rubber bullets, riot gear ?

a reply to: Azureblue

My apologies. I really wasnt sure.

a reply to: smirkley

What stocks in particular do you recommend to invest in?

Im as inexperienced as one can be in stock/financial issues, but i want to make an first time investment and i seek all the advice i can get. I was waiting for something grand to happen so that i could make my move.

so what do you think?