Monday, February 15, 2010

Investors Hell

An investors hell is one where the market is extremely volatile and choppy. Many are predicting this type of market in the next 3-6 months as we have a mixed bag of economic news. Here's how one advisor says to handle it.
1. First, Do not overtrade.
2. When you trade for speculative purposes over the next six months, buy on weakness and sell on strength.
3. Don't let emotions or the news get to you. Don't be a CNBC junkie. Never invest based on the news.
4. Keep the long term in perspective for your core investment positions.

5. (this one is mine) Control your losses. Make sure you have a strategy to protect yourself against downside markets!.

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