Markets Are Down: Save Your Bullets!

If you had been paying attention to the markets lately, you would have seen that sellers seem to be in control. There seems to be a market correction in place and a pickup in market volatility. Where did this market volatility come from? Usually from people like you and me who own stocks and are trying to perform some sort of damage control, and people who had been at the sidelines hoping to scoop up stocks on the cheap.

It's not uncommon to see investors keeping their cool making good paper profits during a long market uptrend, and then during the first few declines, gone into a frenzy churning trades and making more losses than initial profits. What could be better off is to create a shopping list of potential new buys, to be prepared to enter when the market changes its trend.

Liken this idea to running a marathon. Who would likely do a better race? One who is unfit and never prepared; or one who had trained for a couple of months. The one who is unfit would likely have used all his bullets (energy) and curse at the idea that he signed up for a marathon; while the one who had trained would have been glad that he had reserves to manage the marathon, even if road or weather conditions were not ideal.

If you truly want to take advantage of the next bull move, spend more time researching and focus on remaining liquid as the market continues to correct itself.

Sow My Seeds