Is it worth investing in the stock market, because I'm losing now?

Question

I have invested into seven stocks, and all I have been seeing for the past week is red.

Answer 1

Clear your head. If you drop out now, then a year from now, after stocks have rebounded, you'll be kicking yourself. Then to make matters worse, you might feel, after watching stocks go up, that it's a good time to buy in, but they might be ready for a correction then too. It's the most common reason people get peeved about the market:

Once its doing so well, everybody notices and wants in, then it tanks. Conversely, once it's doing poorly, everyone's scared and they run. Always try to do the opposite. It's hard but read read read. Keep on top of events, don't get discouraged.

For the immediate time being, do this: think sunk cost. Pretend like you just bought everything today (because technically that's exactly what they're worth). Ok, so you got them at a bargain. Keep thinking forward, everyday, as if today were your first day, but that's what the stock market does, it starts new everyday.

If you can, buy more to "average down" the price of the stocks you have. Good luck.

Dereck

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The Best Stock Trading in the World
http://thebeststocktradingintheworld.blogspot.com/

Answer 2

Hopefully you have two things;
A well thought out "asset allocation"
A long time horizon.

If you don't have both... you should have never gotten in the market.

I would assume you have investments in Mutual Funds and your 7 stocks are only a very small part of your portfolio. if it's not.... you most likely didn't spend some time reading books on the basics of investing. Not doing so would certainly cost you money in the long run.

Your basic question: "Is it worth investing in the stock market", tells me you just jumped in with little understanding. A fatal mistake.

Get out now. Take a year to learn this stuff. Then come back and make some real money (over a lifetime)....................................

Answer 3

If you keep holding onto loosing stocks. Then chances are that you will keep loosing. And in the end you will loose too much.

If the stocks you've invested in are not working out well for you. Then you should sell them and buy stocks of better performing companies. Or you can keep your money in cash and wait for better market conditions before investing it in stocks again.

Whenever you buy stocks, you should have a plan of what to do if it turns out that you've made a mistake. Even the best stock trading professionals make mistakes, when they choose stocks to buy. And this means that everybody makes mistakes like that. And everybody should be ready to deal with any and all mistakes they make in order to avoid disastrous losses.

Answer 4

You should short the stocks instead, you win when they go down in price and lose if they go up in price, look into PUT options too as this enables anyone to control the loss or gains of most stocks over $5.00 that allow options; for a fraction of their full share value, thus enabling you to control 5- 10 times as many shares with the same money. Book stores have books on how to do it.

According to Jim Cramer on www.thestreet.com all home builders, mortgage companies and banks are going down in price for the next 2 years by a huge percentage. This Guy is a real BULL but has changed his stance over the last 6 weeks.

Check out his several video report clips at http://videoplayer.thestreet.com/?clipId=1373_10371951&channel=Cramer+On+Demand&cm_ven=&cm_cat=&cm_ite=&puc=tscct&ts=1186909691031

And his blog on the Credit Crunch at http://jimcramer.rmblogs.thestreet.com/entry.aspx?q=2065367d-7ed4-4f11-bf4b-998900c99aeb

http://videoplayer.thestreet.com/?clipId=1373_10374063&channel=Market+Strategy&cm_ven=&cm_cat=&cm_ite=&puc=htmlatb&ts=1187040380078

Go on some of those free investing seminars that you see on late night tv to learn, don't buy and training though it's all in the book store but it will give you a good basic grounding in trading stocks http://tmtt.com/

Don't give up, follow the markets be they Bulls or Bears

Good Luck

Answer 5

The only way to prosper in the stock market is to buy low and sell high. You may now have the opportunity to buy good stocks at a reasonable price
However if you get nervous easily the stock market may not be for you,

Answer 6

Depends on what stocks. I regularly invest in stocks that have just had lots of bad news dumped on them, as long as I believe they have the potential to turn it around.

I've bought into Ford and it's been a rocky road, with most of the time having a loss. But I believe in 2 years, they'll be in much better shape and the stock will be much higher than today. That's just my opinion, but that's where I've put my money.

Do you believe those companies can turn it around? If so, don't worry about the paper losses. If you don't think they can, sell.

Answer 7

You've got to think of the long term when investing. The market fluctuates all the time.

Answer 8

things will always end up rebounding. Just wait it out. The market has been in a slump because of housing and credit concerns

Answer 9

Now you are at the point where you can make some real progress.

You have learned that holding stocks hurts!

Now do you really want to learn how pros do it?

Answer 10

i would buy some more if you can handle it. buy low,sell hi