disaster2008

Getting Clobbered: Why I Changed My Investment Rules

Buy low, Sell high. Don't chase stocks up - they will likely come back down. Keep a list of quality stocks that you are interested in based on fundamentals, earnings, growth, and financial strength. In this volatile market, buy using limit orders whan they appear to bottom out and sell using limit orders when they rebound. Then repeat. If you buy stocks with good dividend yields, all the better, because if you miss on the bottom on the stock continues to drop and need to hold, you will still get a return on yoir money. Also, dividend paying stocks are and will be attractive so they are less likely to stay depressed. When to sell: when you think you can buy back the stock at a cheaper price based on its market fluctuations in the absence of any significant company-specific news. Have a good number of stocks on your list so you always have options.