For starters, focus on individual stocks so that it's easier to define and (try to) predict risks and opportunities. For seconds, buy a market index fund if you want to play the broader market.

Markets are going to begin to stagnate or drop after the Dem primary is over and the general election runs is course. I don't think there is any reason to sell off any good performing stocks. The election as well as the Corona virus are likely little more than market fluctuations. Hold tight and stay the course.

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Hold tight and stay the course.

... and keep a good mix of assets appropriate to your risk tolerance.

Both the Dow, and the S&P 500 are down 2%, and 1.7%, respectively. Hardly a correction, which technically is 10%. It is painful to watch one's balance sheet diminish. The 'DOWN' days feel much more 'painful', than the corresponding 'UP' feel 'good', if that makes sense. That's just the way most people respone, and think.

Expecting more drop and trying to figure out what/where to get into over next week or month. This is gonna be a great opportunity IMHO.

Look at the market over the years. The trend is up. By doing nothing, you’ll make money. Run around buying and selling and guessing what a stock will do? You’ll lose.

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Originally posted by Icabod:
Look at the market over the years. The trend is up. By doing nothing, you’ll make money. Run around buying and selling and guessing what a stock will do? You’ll lose.

100%. I remember when Warren Buffet offered the million dollar challenge. If you can pick individual stocks that beat the market average over a designated time you win $1,000,000.

Of course all these money professionals who went to the best schools and have dedicated their lives to this took the challenge. You know how many people won that million dollars? Not a single one. That tells me that the average guy also has no chance in beating market averages by picking individual stocks so put your money in some type of index fund and quit looking at it because you are in for the long haul.

The individual stock is just so exiting because of the get rich quick fairies that dance in your head. The reality is if the pros can’t do it you’re not going to either.

This message has been edited. Last edited by: 1s1k,

Lots of great advice here, and I'm so very glad that the person has left the forum who, when these drops would happen, always posted, "I just got out last week after making xyz% last year."

I never believed him anyway, and it got real old, real fast.

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Originally posted by radioman:
Lots of great advice here, and I'm so very glad that the person has left the forum who, when these drops would happen, always posted, "I just got out last week after making xyz% last year."

I never believed him anyway, and it got real old, real fast.

I work with a guy just like that. Only picks single stocks and never misses on timing. I asked him one day why doesn’t he do it for a living since he’s apparently better than any money manager i’ve ever heard of. He’s not quite as vocal when I’m around anymore.

When I was still working and contributing to my 401K, I would look at downturns in the market, and think don't worry this is a great time to be buying at a discount. It still kind of works that way with my professionally managed rollover IRA.

I was buying on Friday. I added to my position in United Rentals (URI) at $136. On Thursday I bought some at $146, because on Wednesday they released earnings that beat estimates and were 15% higher than the prior year. The week before I bought some at $155. They have a P/E under 10, and I believe they are a well managed company.

If there is a good reason to sell, I will sell. On January 24, Intel (INTC) was up nearly 10% in one day on better than expected earnings. In my experience when a stock pops up like that it will often drop again, so I sold it all at $69. Friday, one week later, it closed at $64. I missed a significant loss.

If I have a good company, with no material breaking news, I just hold it. I am more likely to hold a stock with a loss, but sell if the price seems unreasonably high.

I was more concerned in early January when prices were "melting up", for no apparent reason. So I sold some gains.

The Coronavirus is given as the "cause" of the recent market declines. I am not very concerned because, heck, I don't even drink Corona. I think the market was just looking for a trigger to retrace.

The economy here is strong. Now that the trade war with China has been won, the economy should continue to grow. The US consumer is strong. Unemployment is lower than "economists" thought was possible, and wages for the low end of the wage spectrum are growing, since Mexico is slowing migration. Low interest rates should spur construction, both residential and commercial, which will be very good for URI, the banks, and the oil companies. I think US stocks are a good place to be. Especially since the 10 year Treasury returns 1.5%, or less than inflation.

Buy low, sell high, it works every time.

Oh, and if you have Tesla stock you should (?)…...

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Originally posted by Hay2bale:
If there is a good reason to sell, I will sell. On January 24, Intel (INTC) was up nearly 10% in one day on better than expected earnings. In my experience when a stock pops up like that it will often drop again, so I sold it all at $69. Friday, one week later, it closed at $64. I missed a significant loss.

Hmmm. I've owned Intel stock for almost 20 years. Should I sell? Intel, like a number of stocks, is a very solid stock to buy and stay in for the long haul. Ignore the peaks and valleys and just let it ride.

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Originally posted by NavyGuy:

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Originally posted by PowerSurge:
President Trump deal?

Who knows how the market will react to the outcome of the impeachment effort.

It is a foregone conclusion, the markets have already priced it in.

Don't try to time the market.

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Originally posted by bigdeal:

quote:

Originally posted by Hay2bale:
If there is a good reason to sell, I will sell. On January 24, Intel (INTC) was up nearly 10% in one day on better than expected earnings. In my experience when a stock pops up like that it will often drop again, so I sold it all at $69. Friday, one week later, it closed at $64. I missed a significant loss.

Hmmm. I've owned Intel stock for almost 20 years. Should I sell? Intel, like a number of stocks, is a very solid stock to buy and stay in for the long haul. Ignore the peaks and valleys and just let it ride.

Almost 20 years ago, in August 2000, Intel closed at $75.81, according to the chart on CNBC. So if someone bought Intel in August 2000, they are still at a loss. So we are still waiting on Intel getting back to where it was almost twenty years ago.

If you ignore the peaks and valleys, how do you determine if and when to buy an individual stock?

Keep buying

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Do the dollar cost average thing and you will be ok over the long haul.

I have never been one to buy individual stocks though.

Agree. Buy index funds and forget stock picking unless you think you can do as good as someone doing so as a profession. Been there and tried that.

Buying is easy, knowing when to sell on a downturn is hard.

Diversify in a variety of index funds according to your age and situation. Then go fishing, or whatever.

Just some friendly advice you didn’t ask for.

When you see someone recommend something on Sigforum and multiple others agreeing, buy. Profits are about to soar for that company.

Go to your local library. Look for a publication called valueline. It’s a decent reference to start. Look for stocks that pay a decent dividend. Also look for stocks that have consistent upward trend in both earnings and revenue. Looks at either a 5 year or 10 year window. If a company increases its payout in dividends on a regular basis that’s another strong indicator. I like to hunt for company’s that meet all three conditions. Those company’s are growing and have a positive outlook.

Then read up on what they do and read any recent news releases. If you understand it then consider buying.

Most importantly you need to have a hard target to sell. When you reach that point it should be an automatic sell decision unless you do another analysis and it still looks positive. Then revise your sell target.

Same thing with the buy side. Some good looking stocks are at or near their historical highs. Might not be much room for growth so perhaps you want to buy on any perceived weakness the market may inflict on them.

Individual stocks can be a way to make a great deal of money. They can also be an impressive way to lose a great deal of money. Most folks who were heavily invested in technology from the mid nineties through the mid 00s have some examples of both.

Focusing on actual businesses and their business and financial realities generally works out better in the long term, but is more work and likely less exciting than the latest hop tip or crowd buy in the short term.

As far as TSLA, betting against the delusions of crowds can be risky business.

Sometimes, not losing money is better than getting clobbered chasing the next Amazon or cisco.

To each their own though, this is supposed to be fun after all.

I am going to hold tight unless there is a correction at which time I will buy more. In the meantime I am only looking at what might be an under valued stock.