Many people check their Etrade accounts etc and see that their gains is below the gutters, Minus 20% or even worse. How do you counter the steep slide, how do you make the red, turn green you ask? Well, here’s how it’s done first you have to have patience and not let the “red” phase you. Secondly you need to have money saved in the bank. The interest rates right now are basically zero, so there’s no point in having the money sitting there (besides for bills, and other necessities). What we suggest you to do, is instead of taking your money out, reinvest in those stocks that are “in the red”. You are probably thinking why? I would lose more money.. In fact you wont unless it’s entirely a bad investment, what you are doing is cross averaging, and lowering your total cost rate. Depending on how down you are, and how much money on the “sidelines” you have, you can lower your costs by 15-20% easily. The stocks always come back, take the Greece crash for an example. They went bankrupt and of course that effected the entire market dropping stocks by imminence amounts. Now last month for example stocks took off, and just recently dropped again. The market comes in waves, it drops and goes up and repeats this cycle. How you combatant the flow of the market is by buying and selling when you think you’ve made enough money. Unless of course the stock pays dividends then of course you may want to keep the stock you have invested in. Buying and selling helps you increase your “gains” and also helps you grab more shares from the quick gains.
Here’s a few of our stock suggestions if you need some help on what to invest in.