Why You Should Hang on to Your Precious Stocks
The market these days is in a very unstable state.
The problem is the not only the market in unstable but also the economy.
The every day Joe who has some cash in the market after he heard how "uncle tom" from Texas made millions in the market sees in this recession how the money invested is slowly evaporating.
Combine that with a deteriorating income and you get the decision to take the money out of your investment.
This is the common mistake made by anyone without the proper market knowledge and experience.
Like anything else in life the stock market is a cycle, sometimes it's in its peak and other times it hits rock bottom.
The right and smart thing to do is to buy when it is in it's low and to sell in it's peak.
Easier said than done.
One thing is for sure if you bought a share of a good company with rising income and revenues then in the long run that stock will rise!! Those very market sharks buy those good companies when the market hits its lows, when everyone panics from the news and sell their precious stocks losing 20%-30% from their initial investment and then a year later buy back the very stock they sold when they here how the market rebounded.
So if you have money invested in a company in the stock market that by all parameters you think the company is good don't take your money out.
Leave the money invested in the company no matter what any analyst says about the market.
I would go even further by saying don't sell but start collecting more of the stock.
In the long run when the market and the economy fully rebound it's you who will be that "uncle tom" from Texas that makes high profits from the market.
The problem is the not only the market in unstable but also the economy.
The every day Joe who has some cash in the market after he heard how "uncle tom" from Texas made millions in the market sees in this recession how the money invested is slowly evaporating.
Combine that with a deteriorating income and you get the decision to take the money out of your investment.
This is the common mistake made by anyone without the proper market knowledge and experience.
Like anything else in life the stock market is a cycle, sometimes it's in its peak and other times it hits rock bottom.
The right and smart thing to do is to buy when it is in it's low and to sell in it's peak.
Easier said than done.
One thing is for sure if you bought a share of a good company with rising income and revenues then in the long run that stock will rise!! Those very market sharks buy those good companies when the market hits its lows, when everyone panics from the news and sell their precious stocks losing 20%-30% from their initial investment and then a year later buy back the very stock they sold when they here how the market rebounded.
So if you have money invested in a company in the stock market that by all parameters you think the company is good don't take your money out.
Leave the money invested in the company no matter what any analyst says about the market.
I would go even further by saying don't sell but start collecting more of the stock.
In the long run when the market and the economy fully rebound it's you who will be that "uncle tom" from Texas that makes high profits from the market.
Source...