Waiting for the [tag]stock market[/tag] can be frustrating, however it is quite normal thing. Every experienced [tag]investor[/tag] knows this period and many of them were waiting long time for their [tag]best stock[/tag], which made them their [tag]fortune[/tag]. Read the Boik’s book “How Legendary [tag]Traders[/tag] Made Millions” if you want to know more about other traders during market like this. [tag]Jesse Livermore[/tag] talks about this waiting time as well. Sometimes it happened that Jesse had to wait several months before a [tag]winning stock[/tag] opportunity came to him. He wasn’t the only one. [tag]Nicolas Darvas[/tag] was another [tag]successful investor[/tag] who realized he would rather wait than [tag]investing[/tag] in [tag]bad stock market[/tag]. Jesse Livermore was able [tag]making money[/tag] literary in good market as well as in bad market. Nevertheless he had periods when it was better sit tight in cash and wait. Darvas was the type of investors investing only in bull markets.
This week was hectic and the market was trying to bounce up several times. However only [tag]poor stocks[/tag] were behind those attempts. Most of the leaders didn’t show up and we are back in correction. What’s worse the market probably falls further down as you can see on this chart:
As you can see, the market is attacking its long term [tag]support line[/tag] and it seems it will break it down. Unfortunately, this is not the market anyone should be investing money in. The [tag]dollar cost averaging[/tag] or any other strategies based on [tag]bargain hunting[/tag] will be or may become a disaster to any investor’s [tag]portfolio[/tag].
What to do in this market, though? The best way to do now is to wait. You can work on reducing your debt, [tag]saving more money[/tag] and [tag]study the market[/tag], strategies and [tag]stocks[/tag]. Make yourself ready and prepared for the next upturn.
Some time ago I wrote that I moved all my cash from brokerage account to a savings account and in February 2009 I would move it back and start investing again. Well the market doesn’t look like a friendly buddy and I made my decision to leave my money on the savings account for another 3-months period. I do not have enough money to invest into CDs, bonds or any other money market vehicle yet. Most of them require an initial investment $5,000 or more and my investing account is about a half of that sum. With such a small investing account I need to move it to savings account to accrue some interest (at least something, since on the brokerage account there is no interest or very little one).
What is your accomplishment for this waiting period?