This thread will be where people can register news about markets, trade and the economy as well as express ther views on how major news or government action might influence market behavio/reactionr or have an effect on the economy.
I think a good general rule of thumb is that when nobody is panicking, it's time to sell, and when everybody is panicking, it's time to buy.
Quote from: Brian on December 14, 2016, 12:57:37 PM
I think a good general rule of thumb is that when nobody is panicking, it's time to sell, and when everybody is panicking, it's time to buy.
Yeah, well, I don't do that.
(http://www.good-music-guide.com/community/Smileys/classic/cheesy.gif) If you're a trader, there are worse rules. If you are not a trader, you're going to need a bigger rule. If you don't know which you are,
you are not a trader.
(http://www.good-music-guide.com/community/Smileys/classic/smiley.gif)
I have a friend, she buys stocks and sells them and buys the next one on no particular rule. I tell her she should accumulate, not trade. When she has money to spend she should buy another stock. So she shows me her account and I ask "what are you doing with these dividends?". She didn't know, so I tell her to set up dividend reinvestment for all her stocks.
It's behavioral psych. Don't just lecture her to be an investor and not a trader, let her see the sense of it. By reinvesting dividends she'll be disposed to think in investment terms. This also allows her to see something important in a nonabstract way, that an investor is primarily concerned with through cycle and not in cycle gains.