Thursday 23 April 2020

To Buy or Sell Stock in this Market

Looking in my own investment account has become a different experience this month.  I never imagined that a 2008 like stock collapse would happen again in my lifetime. Or I didn't think that the mass fall in stocks would happen so soon.  Here it is again.  The massive drop in my worth as a US Citizen all due to a financial crisis that occurred due to a Global Pandemic.  The COVID-19 Pandemic has crashed financial markets all across the world and especially in the United States.  My shares in many companies dropped 25-40% in a month.  That means my investment in my own wealth just plummeted. So what do I do now.  

What do we do now.  If I was wise I would have investment in and taken advice from American FX who forsaw this calamity and traded well in the market to make great financial gains.  INstead my worth plummeted. I did not see the benefit in short selling the market instead I went on a buy and hold philosophy thinking that our market which had risen to great hights would stay.  So now that the market has fallen do I sell the rest of my investments which have already taken a loss and wait for the market to go lower and buy again? Or will the market increase and I will be able to claw back the money I spent to break even. 
I do feel happy to know that I was able to dump lots of my share before the big crash hit.  I was under the impression that the valuation of several companies I was invested in was a bit high.  I was able to make a nice profit by letting those go at a much higher price then I purchased them at.  So now the question is do you buy low and sell quick before the market jumps back up.  The roller coaster has been constant and to be honest I am not a penny trader nor do I like to buy and sell on a day to day basis. I prefer to instead buy and hold valuable companies and see them grow.

 I think investing in companies that are bound to succeed is the best choice and now more then ever investing in companies that have the capability to thrive in bad economic conditions is a smart move.  As always we are not giving financial advice only talking about the market as it is.  For Financial advice see your local broker, investment firm, or attorney.

No comments:

Post a Comment