Depending on how you look at it, the market woes we are currently experiencing are either bad or good. Obviously, bad if you never grabbed some profit from your holdings.
On the other hand, I actually welcome this downward movement. When it comes to trading stocks, I always feel there is more risk in a bullish market than bearish market. There is no worse feeling than buying a stock at the top of its peak.
This correction, as some people call it, allows many of the “inflated” stocks to come back towards its real current market value. Remember, that many of these stocks have moved up on perception and/or overall feeling. I still stand in saying that what in this economy has really changed?
My game plan for the coming weeks is to hold on to many of my long positions such as: Bank of America (BAC), China North East Petroleum Holding (NEP), and Clearwire (CLWR)… until some action happens that really makes me want to sell. I wil also be tracking my watch list. PATIENTLY waiting for a setup that seems enticing.
In today’s market there are just too many different type of etfs, sectors, and securities to have to sit on the sidelines 100%. The goal is TO NOT CHASE, but TO MONITOR. Find stocks you like and track them. Eventually a good trading opportunity will show itself.
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