Monday, January 11, 2010

The Best Thing You Can Do As An Investor

Do you like to buy and sell stocks?  If you have money to invest right now, you should be doing lots of research into the companies you're thinking about buying.  And take your time because the market is way up since March of 2009.  Otherwise, the best thing you can do is to not pay attention to the market.

I buy a lot of different stocks that tend to all go up as the market goes up and all go down as the market goes down.  The only way you can profit, assuming you have a lot of money invested, is to slowly shift to cash or bonds as the market goes up, then slowly shift back to stocks as the market goes down.

Lately, the market has been going up and up and up.  Where should your money be right now?  A big chunk should be in cash equivilant investments or stable investments, but you should continue to hold some of your investments in stock (just in case the market continues to go up).

This is all my opinion as an amateur investor.  I am not a stock broker.  I do know that the stock market changes have very little to do with the value of the underlying companies.

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