What else can be said about the stock market today that hasn’t been covered in the last week or two? I mentioned before how the DOW has been hovering around 11,300 and expect it to stay around that level for some time. There will be volatility from day to day, but don’t expect the markets to rise several days in a row. We’ve watched as the DOW rises to 11,800, only to see the train wreak come and continue to 11,300. The financial sector and all of it’s trouble are being blamed for the 280 point plunge today (and rightfully so).
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If any of my readers were willing to take a chance in the financial sector or more exactly, trade Fannie and Freddie, would have done great if they bought right before the close yesterday and sold at the height of the day for these stocks. If you were to play it that way, you would be up more than 50%. Let’s look at the last of the three stooges, Lehman. If you tried to do the same thing with Lehman, you would have lost 46%. I don’t know about you, but I don’t take chances with my money.
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The markets themselves are unpredictable and very unstable. There are individual stocks that are great to be invested in, but as for the Markets as a whole…please stop the ride, I want to get off. During the next few weeks I will try to show you some ideas to keep in mind for when you look to buy stocks. I can’t tell you which ones to buy, but I’ll try to shed some light on the issues.
Good luck and happy trading.
Tags: Financials, Stock market for beginners, Stock trading
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