My title might be kinda out of this world or off topic.
I just read Francis Kong's blog post about Happiness and Joy. In this time I know most of us who invested in the stock market don't feel happy because the US crisis and the European Debt crisis is hurting us. Our portfolio has been in the red for the longest time and it seems cost averaging wont allow us to be in the point of even breaking even.
But again as the author Tony Campolo in Francis Kong's blog says many people are in the elevator and yet it seems that because in the elevator everyone is in a gloomy state waiting for their floor so that they can get off and go to their job or meeting. Why don't we enjoy the ride by singing with rest of the passengers. And when we get off why don't we continue singing and enjoy the rest of the day.
I know it has been the longest time or probably you just got in the stock market and think it was the right time and yet you still end up in the red like the rest of us. Would you put a sad face or would you rather sing?
Yup analyst predict that this bearish market will drag on, the market seems to be moving sideways till the end of the year. But a some investors, not traders, are more happy than you think. They are happy because they can buy more stocks of good and great companies at a bargain price. Investors buy only when the price of a good and great company is down; did you catch that?
I say it again: Investors buy only when "PRICE" of a good and great company is down. A lot of traders buy up when a stock's price is climbing because they hope to catch the ride and profit by the time the stock's price is higher than what they bought it for which is correct. But if that company is not good or have poor fundamentals you will end up caught when the stock's price drop down. That is why the advice is to buy stocks of blue chips which gives regular dividends so that when such company's stock have a not so favorable price we can still profit with the dividend and in time the price of such stock will go up and that is the right time to sell.