03-01-2012, 09:42 AM
The word crash means to break or fall to pieces with noise. But applying to the stock market is sometimes different. A stock market crash can be very sudden; making a lot of noises. It can also be drifting so quitely and slowly southwards that before everyone knows it, someone declare the market is already in the bear territory.
If you ask me, a sudden market crash will cause a lot of people's sufferings but it's also present an opportunity for those who dare to take the risks. Who have deep pockets. Who after buying can wait for a long long time(if necessary) for the next cycle of mini to Big Bull.
So may i share how to buy by Jamie E. Smith:-
HOW MUCH TO INVEST
HOW MUCH IS ENOUGH
"There are many different and contrasting views about whether it is better to invest a little and often, or invest larger sums occasionally. I think you should aim to do both differentially base on the state of the market at any given point. Once again, it is a matter for your personal judgment. Nobody can tell you or predict how you should behave in this context.
Investing a little and often means that you limit your exposure to market fluctuations and therefore you manage risk. Investing aggressively when a special opportunity arises, such as Harley Davidson example, makes sense, so that the more you take advantage of a situation like that, the more your returns are likely to be if you get it right. So, in summary, invest a little and often, and invest heavily rarely and intelligently. Taking both approaches is the most likely to provide you with the best returns overall and in the long run".
Unquote:
The author waited ( if i still remember) more than 5 years to invest in Harley Davison during the last bear Market.
If you ask me, a sudden market crash will cause a lot of people's sufferings but it's also present an opportunity for those who dare to take the risks. Who have deep pockets. Who after buying can wait for a long long time(if necessary) for the next cycle of mini to Big Bull.
So may i share how to buy by Jamie E. Smith:-
HOW MUCH TO INVEST
HOW MUCH IS ENOUGH
"There are many different and contrasting views about whether it is better to invest a little and often, or invest larger sums occasionally. I think you should aim to do both differentially base on the state of the market at any given point. Once again, it is a matter for your personal judgment. Nobody can tell you or predict how you should behave in this context.
Investing a little and often means that you limit your exposure to market fluctuations and therefore you manage risk. Investing aggressively when a special opportunity arises, such as Harley Davidson example, makes sense, so that the more you take advantage of a situation like that, the more your returns are likely to be if you get it right. So, in summary, invest a little and often, and invest heavily rarely and intelligently. Taking both approaches is the most likely to provide you with the best returns overall and in the long run".
Unquote:
The author waited ( if i still remember) more than 5 years to invest in Harley Davison during the last bear Market.
