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Thursday, December 9, 2010

MARKET CORRECTION

       Have you ever tried mountain climbing and in the middle of the trek you took a rest or even a nap before continuing to climb? or participated in a cycling race wherein you got tired and you need to slow down a bit to have 2nd wind for the later part of the race? 
       In the stock market, we also have that similar situation wherein the market that is having an uptrend will slow down for a while with stocks prices taking a dip of around 5% to 20% or so. It is just a short period of lowering of prices which can not be considered yet as bear market already. Market correction should be welcomed by stock investors instead of being feared as this is the opportunity to buy more fundamentally sound stocks. And for those who got to purchase stocks at high price, they can lower down their average price during this time. It is also a perfect time to reposition your stocks portfolio as you could sell those who are non-movers and allocate the proceeds for more liquid stocks that are at a bargain. 
source: http://www.meghainvestments.com/

       For the past 2-3 weeks there was a market correction in the Philippine stock market, unfortunately for me who is just a small time stock investor I don't have enough cash to buy. So many blue chip stocks like TEL, ALI, MER, SM, AEV and a whole lot more were on SALE. It was like a little kid entering a chocolate and candy store which have big discounts! All I could do during this correction time was watch on the sideline and study how does the traders and investors behave while prices were going down. Some of my friends were able to sell their stocks and also added more good stocks to their portfolio. Anyway, as a newbie in stock market I learned a thing or two during this market correction. It is advisable to always have extra cash in your funds ready for any correction also just relax and avoid panic selling. And as for me, it is still better to be an investor instead of a trader... 
       How about you, do you also want to try stock investing? Don't waste your time, it is better to start investing while you are young.

"He who has a bountiful eye will be blessed..." < romer is ayeckanic, ayeckanic is romer > Ayeckanic™

3 comments:

investinginphilippines said...

Very true, though anytime is the best time to enter stock market if one starts at a young age one can learn so many things and when one has enough capital to really participate big one can use acquired skill and really really profit big...

The secret really is timing. It takes time to learn this even me I am way off my timing... Well we have to always look at the bright side. As my friend/UPLB professor says "at every negative side of a battery there is always an opposite positive side"

RmR said...

very nice inputs sir! lucky for those people who wanted to invest in the stock market right now because online trading is already available. It was my plan for so long to invest in stocks but it was only this year that i started when i learned that there is an online trading.

Anonymous said...

basta idol green na green pa din ang paligid, masaya tayo.

john316

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