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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