Look at the stock market after May 11th. It’s been backsliding horribly. Ask anyone how to make more money in the stock market and the answer’s obvious.
“Buy low and sell high”
Yet, nobody does that. People are so afraid of loosing their money that they sell low. Many people are selling right now. Why do they sell? For the same reason I stated above. The stock market has been going down since May 11th.
Now ask yourself. Does this make any sense at all?
Of course not.
If you follow my rule of saving 10% of what you earn. You’ll soon have a lot of money sitting around. After you have a few thousand dollars sitting in your night dresser, you starting thinking about how to invest it. That’s why it’s so important to see what’s happening even if you’re not in the stock market yet.
If you’ve been saving 10% of what you earn, you would have money to invest in the stock market right now. You’d be getting a good buy and your money would have great returns.
That’s the problem with people who are worried about their money in the market. They’re not putting more in. If they were, they’d be happy about what a great buy they’re getting.
Today is July 20th, 2006. The S&P 500 Index closed at 1249.13
I will refer back to this post in the future.
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May 26th, 2007 at 9:15 pm
Not everybody buys low and sells high, some sell high and then buy back low. Better yet I bought Put 1515 options on the S&P 500 on Monday the 21st for 9.70/sh and sold them two days later on Wednesday the 23rd for $17.60/ sh. A 55% profit ROR trade in two days. I too enjoy getting 6% from the bank, but it does not come close to beating my returns from the stock / options markets. Bill
May 26th, 2007 at 9:47 pm
Bill,
Great. I look forward to your input when we start trading stocks in the Million Dollar Savings Club.
- Bryan