Quote:
Originally Posted by 96z28ss
I do recommend researching the company as much as you can and make a somewhat educated purchase, no one can predict what will happen in the future but if you do some homework upfront it may pay you back in the future.
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This is all part of UNDERSTANDING what you own and WHY.... Which helps you when the chips are down and you're struggling with "what to do".
Nobody cares when the market is flying....
The worry about "the market" and your investments begins when you're dying the death of a 1000 cuts... and your portfolio starts to sound like a punctured tire. THAT is when (you need to KNOW BEFORE THIS HAPPENS) you must have faith in the names you've chosen to invest in.
That is also why I don't think ANYONE should buy anything because someone else told them about it. Hot stock tip or not... KNOW what you buy. There's 10's of 1000's of companies out there -- you only need to know 20 of them at most. Being comfortable with them will save you from bailing out at the bottom (the old buy high and sell low syndrome). It might also help you to continue to buy in down markets === which for me === is how I've made real money.
Be careful of course -- of buying more of a company "just because it's down" -- make sure there isn't a fundamental reason why it's down, first.