OK so much for the knives in this post. Be sure they will cut you and can cut your profits.
But what do investors do when markets rise so far that things get dizzy and there looks to be a fall, or as the professionals call it 'a correction.'
We should be sitting tight, waiting for the knife, erm stock market to drop.
Riight now we are in a falling market. I am sitting tight on some orders right now. I and you want to maximize our profits and things are looking good for us to buy in on this correction.
Some good stocks are getting reasonable pricings.
I stated in an earlier post that Apple Inc is going to be a buy for me below $550. that holds true not matter what the results posted this week say. Unless they are totally disasterous.
Another interesting falling stock today is Walmart (WMT) the have been accused of paying bribes to Mexican authorities, in order to open stores. So on that news their stock is falling. The bad news is an excellent opportunity to buy in stock. I am an owner of WalMart (WMT) and this fall is an opportunity to top up on a few less expensive stocks as the initial panic stops and the stock regains its basic confidence.
The trick now is to pick the stocks you like on fundamental levels, good stocks, good profit stream, lots of strong cash flow and set a level where you like a company. Buy in at those levels or cheaper and keep buying until the stock rises then follow it up.
It is easy to say but hard to do. Buy in as market and stocks reach you value levels not those of a TV or press pundit. If you wait for the good news, you'll be waiting too long and miss the boat.
This 'correction' is a boat you should look to catch, even the correction of 2007-8 was no Titanic for those who bought in on the down turn.