26 March 2020
We have seen in the last 4 days a huge opportunity for massive gains if you’re a swing trader or into value investing. All my recent stock picks I believed we’re at rock bottom have sky rocketed and will continue to do so in the course of market recovery. In the past 3 days alone every one of my stock picks have gone up 5%-20% every day. Throughout this crash we’ve seemed to have had 2 red days and 1 green consecutively. Of course the markets can be driven heavily off the news and it can account for people getting more comfortable with getting back in the stock market. The panic selling has ended and everyone who sold out of their retirement accounts are defiantly hurting. It is very possible the market can dip back down again and I think that’s a strong possibility, but if you’re a value dividend investor like myself share price really doesn’t make a difference. When I see a beaten stock price I see a great company at 50% off. With the times we’ve had the last few months it’s defiantly nice to see some returns in gains and a status board of all green. Don’t let the mass fool you, all I hear is we haven’t hit the bottom yet this is all an illusion of a bear trap. Maybe this can be the case but nobody can time the market. If you could their would be a lot more successful day traders, and we all know most day traders lose money. In my opinion, rock bottom was last week whether markets continue to go up or down. If you believed all the fear of people saying the market will continue to drop and didn’t participate last week you missed a huge opportunity. It’s not too late, share prices are still low and it’s never a bad time especially with these insanely low costs. I was buying at the peak of our bull market right before the crash and haven’t stopped buying. You only lose if you sell. In 10 years time this will be nothing more than a black Friday sale. Don’t forget to dollar cost average, do your own research, and invest with a margin of safety.
Before we check out the charts I’d like to talk to you about a huge disappoint and a loss I made over the past week. I’m a huge believer in owning companies with a healthy dividend so when Beoing cut theirs last week I sold out for a small profit. I was in at $95 a share and sold around $124. At the time I had no idea if these uptrend days would continue because it is impossible to time the market. It now sits at a whopping $180 which has been driving me crazy but these things do happen. The only way to progress is to learn from your mistakes! I reinvested those profits into Coca-Cola, but basically traded a 6% gain the following day when I could of had 40%! Even tho I shouldn’t I keep checking BA (I do anyway) and bang my head against the wall.