So Ukraine situation is in all the news, friday suddenly had a selloff and the situation got worse during the weeked. Futures are pretty low in relation to a normal monday (and given the recent uptrend), foreign markets are quite down today as well....so when would i hit the panic button? I actually hold stocks, but they already fell 1.5% on friday...and pre-market is not looking good...is it generally a good thing to sell off at this point (and pay fees) or would you wait further news (possible recovery/further downtrend)
Well the BEARS wanted a catalyst and got it but the market held up for today. I'd call that pretty bullish. I managed to make money today in the ES but it was pretty choppy and nerve wracking
There is always reason for BEARS to feed. A balanced portfolio and some cash cushion would make one less of a prey for those bears. It would be best to sell in small percentiles of your holdings in such crisis times and be ready to buy quickly in case of a possible rebound. Oh, and you should panic when you hear about nukes being deployed
Most should stick to a largely bottom-up investment style and not worry about trying to predict market fluctuations or selloffs. I agree with keeping some cash and perhaps even a bit of a broad market short position via ETF if you're really bearish. But mainly look at corrections and bear markets as ideal opportunities to buy fundamentally sound companies at bargain prices. Longterm you have to bet on growth rather than doom and gloom.
I agree with JR Erwing. I'm using the buy and hold strategy and only sell if I see something wrong with the company, or in order to balance my portfolio. In a situation such as this one, I'd rather keep what I have (it already saves me the fees, the taxes and the lost dividends from the time I wouldn't own the shares) and just slow down buying more, thus building up a cash reserve which will be usefull if a larger dip comes. If you are really bearish then shorting an index could be an option to protect yourself. I also don't use any leverage at the moment, but I am ready to in case a dip comes. There is never a better time to buy great companies than when everyone else is panicking, because no matter what happens in Ukraine, some companies will still continue to make the same profits they used to.
I'm new to this forum and stock market. How do you know what stock to invest in? How long to hold on to it. Do you have to have a lot of money to start investing? I hope to learn a lot from this forum. Jr. Ewing I like your advice.
I'm not an expert either, however the first rule of investing should be to have enough cash around to keep living a healthy life. Otherwise, in case of an unexpected melt down, you could lose your savings in a blink. A balanced portfolio is also important if you are new to stocks. Balanced meaning not having all eggs in one basket...
T.Y. I've given you some info to get started on these very things in several other threads. Any other questions, just ask.
