stock market crash

[_V_]

That's why you "hedge" your bets. I invest half of what I could invest. So if it goes up I win, if it goes down, I wait patiently and put the other half in and win even more. The further it goes down, the faster it rises and the more you make. You need to be both a bull and a bear at the same time.

So you put half in, it falls much lower, you put half in again (so 3/4 of the pot)? Do you then rebalance, so if say it rockets up, you sell enough to bring your cash pile back to where it was, meaning your remaining shares where effectively "free"?

Do you chase income shares or growth? I read an article that said dividends are illogical, bigger gains are made on growth shares and if you need an income just sell some for profit every quarter.

[jamesbrown]

That's why you "hedge" your bets. I invest half of what I could invest. So if it goes up I win, if it goes down, I wait patiently and put the other half in and win even more. The further it goes down, the faster it rises and the more you make. You need to be both a bull and a bear at the same time.

Agree. I'm currently in, but not in a big way. Obviously, the main uncertainty is the second wave, especially as we approach the autumn because there does seem to be a seasonal component. Any major news on a successful treatment or vaccine, and I think the markets will melt upwards, otherwise it will be very choppy (read: opportunity). Remember, the markets look way ahead of the real economy and have no problem in taking a massively optimistic view when flush with QE cash - they just need some very slight encouragement to justify it.

Charts are for cretins. They're the crystal ball of investing.

[BlasterBates]

Agree. I'm currently in, but not in a big way. Obviously, the main uncertainty is the second wave, especially as we approach the autumn because there does seem to be a seasonal component. Any major news on a successful treatment or vaccine, and I think the markets will melt upwards, otherwise it will be very choppy (read: opportunity). Remember, the markets look way ahead of the real economy and have no problem in taking a massively optimistic view when flush with QE cash - they just need some very slight encouragement to justify it.

Charts are for cretins. They're the crystal ball of investing.

I went in 50% keeping strictly to my strategy but I did have that feeling you get when you jump out of an aircraft

[AtW]

That's why you "hedge" your bets. I invest half of what I could invest. So if it goes up I win, if it goes down, I wait patiently and put the other half in and win even more. The further it goes down, the faster it rises and the more you make. You need to be both a bull and a bear at the same time.

At last a winning strategy for the stock market!

Novel Prize 2020 is yours, in all categories!

[BlasterBates]

At last a winning strategy for the stock market!

Novel Prize 2020 is yours, in all categories!

That's normal, the stock market always goes up in the long term so you just hoard cash and buy more when it's down. In 5 years the crash will look like a tiny down blip.

[AtW]

That's normal, the stock market always goes up in the long term so you just hoard cash and buy more when it's down. In 5 years the crash will look like a tiny down blip.

Fool proof, buy buy buy!

[BlasterBates]

So you put half in, it falls much lower, you put half in again (so 3/4 of the pot)? Do you then rebalance, so if say it rockets up, you sell enough to bring your cash pile back to where it was, meaning your remaining shares where effectively "free"?

Do you chase income shares or growth? I read an article that said dividends are illogical, bigger gains are made on growth shares and if you need an income just sell some for profit every quarter.

Yes more or less that's how it works, always have dry powder, that makes investment stress free as you're always in the game. These days I tend to go for dividend stocks so my cash account fills up during the good times. The trouble with growth stocks is that they always seem to be expensive, so I don't tend to buy them. In any case the best strategy is to be well diversified, be like Warren Buffet, check out Berkshire Hathaway over the last 10 years. Steady returns and relatively low risk. Buying a range of stocks in an index is a good idea, the more stocks you have the better. My rule of thumb is to have about 60% invested in stocks.

[BlasterBates]

Anyone who is new to investing in shares. Learn how to value them.

The 4 Basic Elements of Stock Value

The thing is there is a lot of "tripe" on the stock market eg airline stocks and cruise lines which are easily avoided, if you learn the basics. Many novice investors lose because they invest in companies whose share prices are down, but are actually in financial difficulty. Always make sure the company you invest in has a healthy balance sheet and an optimistic outlook.

I use motley fool to screen stocks

Motley Fool News & Analysis | The Motley Fool

[AtW]

“ Always make sure the company you invest in has a healthy balance sheet and an optimistic outlook.”

Why would share price drop in companies like that?

[DimPrawn]

“ Always make sure the company you invest in has a healthy balance sheet and an optimistic outlook.”

Why would share price drop in companies like that?

Sometimes they get dumped in a panic sell off along with all other companies. The good, bad and the ugly all fall, some deservedly so, others not so.