Officially, the stock market and economy were hitting rock bottom in varying industries from October 2008 through March of 2009. Did I have to be a stock analyst or a money making genius to know this? Of course not, I just had to have a long enough attention span to notice a few of the headlines in major news papers and to take a 60 second look at the stock market each day.
People have been scared for the most part. Hey, companies are laying off people right and left, they are trying to cut costs and they are trying to make money in a down market and that's what their normal response is.
Yet it doesn't take any brains at all to know that the idea behind profiting on the stock market is to do two things.
1. Buy low, and
2. Then sell high.
Look at major stock like Ford. That auto company's stock bottomed out in October and November of 2008 and I was just sitting on the small amount of money I had to keep my family going.
Most of us don't want to risk it and that's understandable, but nothing worth doing doesn't come without some risk. So what did I do. I played it safe. I kept the money out of the market even when I saw Ford at $1.29 a share. My gut told me to go for it and put what I had into Ford. I didn't. BAD IDEA! If I had put every dollar I had into Ford and then sold it when my gut told me to sell at about $8.00 a share I would be sitting just fine right now and building a decent retirement.
In essence I was what is known in the stock market as a "chicken." I sit on my money and hide it to protect it. I take no risk so I have no chance at gains.
The market is now rising and I regret that decision. I'm not a gambler but I have a gut for a good thing and I should have gone with it. Right now the market is recovering. If you have money and you're not buying in longstanding, proven companies that have stood the test of time who used to have good prices per share on their stock, then you are making a mistake.
Warren Buffett, one of the richest men in the world has not touched his financial portfolio in years, but he's buying NOW... why? Because things have already hit their bottom and there is nowhere for them to go but UP! Take the hint!
Now is the time. You are going to see things climbing and you are going to have regrets. Use today's newest tools at Scottrade.com, Sharebuilder.com, Ameritrade, Etrade and more to help you but don't sit on your hands. The time to get your money working for you fast is NOW!
I'm no mogul here, but consider this. I did nothing. If I had bought and sold every last reserve I had at that time when my gut told me the timing was right then I would be holding about $81,000 right now in pure profit after selling the stocks. 800% Profit within 6 months is virtually unheard of.
When is this type of profit even realistic? Recovery from an economic recession, that's when . . . and that's exactly where we are now.
Warren Buffet is buying! How about you?
Authored By: Christopher A. Pearsall, Wealth Tutor
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I can't agree with you Barbara. First, I suspect that you may have posted this brief comment to get a link from my website to yours so I removed the link reference. I do this sparingly, but your point is that you should get a business loan so that you can buy a personal residence?
I'm not sure if you get the gist of what "fraud" is in terms of doing this. Getting loans to buy and flip houses is one thing in order to make a profit but it's completely another to take out a business loan to get a personal residence.
Now admittedly there are ways in which a business loan could be taken out to buy a residential building for business purposes and it also has the residence as its location. However, to use a business loan for such purposes you would need to have the business as the primary reason for your business loan and not the purchase of your residence.
If you respond further with more content and explanation of what you were talking about rather than the typical attempt to get a link from this site, I'll be happy to post a proper link that goes with it.
Frankly, in today's economy I have a feeling that people really don't need any more debt.
Posted by: Christopher Pearsall | December 07, 2011 at 06:58 AM
Houses are quite expensive and not everyone can buy it. But, business loans are created to aid people in such kind of situations.
Posted by: NettieCobb35 | December 06, 2011 at 03:33 PM
Joel,
We'll have to agree to disagree about being "scared" in business. Being scared or "having fear" is an emotion. Emotions are biochemical reactions created within our natural physiology. They exist for a reason. By themselves they are just an emotion or reaction to information that our brain is processing. When you are in a business, generating wealth, saving money, protecting your investments, or may place a substantial amount of money or even promises that you have made in your business, then that money-making business proposition has created a risk.
In response to that risk I am certain that even some of the best businessmen and investors have been scared or fearful of the loss or consequences associated with that risk when going forward with their money making venture.
In my humble opinion, there is plenty of room for being "scared" in business. It is fear that in any business or money-making venture that causes the entrepreneur or business owner to use prudence in his or her decisions, to take protective measures when drawing up contracts, to mitigate the risks if something is not going right, and is a primary contributor to gaining wisdom for future business decisions.
When you are scared about a money making decision, it is your brain telling you that there is something to be aware of, perhaps that contingencies are to be anticipated and in many cases it causes your mind to be sharper, to look deeper, to question and as a result to grow.
Unless I have misunderstood you, I see "having fear" and "being scared" as no different from one another from any profit making business venture or entrepreneurial endeavor. It it my firm belief that it is, in fact, a key ingredient to any money making venture because it is the protective measure that prevents foolishness.
If there is no room in business or making money for being scared or having fear, then unless a person has perfect judgment each and every time. . . . the lack of fear leads to a business or wealth building strategy that is founded upon foolishness.
When problems arise due to fear it is because we allow the fear to overwhelm our money-making and/or wealth building ideas and we allow it to paralyze us without forward movement not due to any real reason but due to the fear itself.
Something to think about anyway Joel.
Posted by: Christopher Pearsall | September 14, 2010 at 06:43 AM
In business, there's no room for getting scared. It's more of taking the risk to succeed. Thanks.
Posted by: Joel Gray | September 14, 2010 at 03:33 AM
Thanks for your stock advice.
I'm also like you in terms of the "chicken" aspect cos i'm scared of losing my money but I think I should buy some right away to give it a try.
Posted by: Efe | October 26, 2009 at 03:31 AM