Best Answer - Chosen by Voters
Market timing, which ic what you are trying to do (buying low, selling high), is not feasible to almost all investors. Moutnains of reasearch demonstrate this. Why do people keep trying to chase the market beats me.You need to construct a portfolio that diversifies risk. That is the new theory (it has been around for over 30 years), and its proponents won the Nobel price.
Try mutual funds. I have one for bonds (around 7%), one for Big corporations in the US (43%), one for international stocks (25%) and one for small cap businesses in the US (25%). Bonds and stocks may run coutercyclical, when one goes down, the other goes up. So may happen with internation and local businesses. Things may be crappy here, but great overseas.
Keep in mind, this is an aggressive portfolio. A lot goes to stocks into Small Caps and foreign countries. Little goes to Bonds. This is because I still have a while to go until retirement, and am tolerante of donward movements (losses for periods of up to 2-3 year terms). This might not be the right medicine for you, but it can give you an idea.
By the way, I do all my inveting via my retirement plan (457b), to defer taxes. Allways use you 401K, 403b, 457b, etc., before opening an actual brokerage account. Your money will grow tax deferre, and the principal pays taxes at retirement (when your income probaly is lower). 100% 1 Vote
Other Answers (3)
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I would say if you ask any successful investor if they knew the day to day stock price fluctions in a stock or the market, they would not know. Daytrading is more about luck. But if you asked them for a term of 1 year to 10 years what they see, they could give an answer. It is because you can use the data which is given out to predict what will happen in the distant future and use that to make money.
just something i thought up
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I have started trading stocks about a 6 monthes ago and I have made a little over $3,000. I mainly trade with (V) Visa, and (AMSC) AMERICAN SUPERCONDUCTOR CORPORATION. Buy Visa around $75-$80 and buy AMSC around $22-$25. Right now they are high but be patient and they will drop.
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