Posted by: eminitrader January 6, 2008
Making Money with Eminitrader
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Aman: Not sure why you bought INTC and DELL and sold ABX. Since ABX was showing you profits, I'd have added more of it than selling it.

Team Player: Please take my advise. Never average down. If you buy a stock and it goes down, do NOT buy more. There are times when the market will come back up and you'll make money but in the long-run it leads to disaster. If you are going to buy 1 stock only, I'd rather buy QQQQ than AAPL. AAPL is very volatile. I hope that you are risking only what you can afford to lose. If we head into a recession like many have predicted, AAPL could lose more than 50% of it's value. Right now if I were you, I'll give the market some time to stabalize and only buy after that. Our main goal should always be the preservation of capital and then capital appreciation.

90% of the stocks move with the market, so it is necessary to understand whether the market is going up or down. When the market is going down, you can buy the best companies but still lose money, similarly when it is going up you can buy a dog and it still goes up. Right now, the market is going down. We do not know whether it is the begining of a down-trend or a correction in an up-trend. Wait for a week and we'll know. By next week if the market doesn't go below 1400, I'll start buying otherwise it could be months before this market will go up.

I'm glad to know that there are people that were inspired by this thread but please do not assume that it is easy to make money. I've lost my share too. Please read some of the books that I have mentioned here.

Good Luck.

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