I have to admit, market movements actually do affect my mood and even physical sense of well-being. It always gives me an adrenaline rush to look at those little graphs every few hours. Last night, my dad told me: there's only one person that is able to buy a stock at the lowest price, and only one who can sell it at the highest price. The rest of us have to be alright with being in-between...coming from a man who lost almost everything he put in after the dot com bubble burst.
Hindsight is 20/20. GE touched 18.31 today. I occasionally (fine, I exaggerate, I mean, really often) kick myself, thinking, why oh why didn't I put in order for 18.50? I knew it. I so knew it.
So, what can we do in foresight? There are so many different kinds of trading strategies out there. I just think about dollar-cost-averaging, since this is the best way to profit over the long term. Investopedia says so. Dollar cost averaging is the idea of buying a set $ amount of stock over the course of a long period of time, a period of months and years. For instance, you could buy $100 worth of 1 stock every month. Some days you're able to buy a few shares, some times, when the prices are lower, you'll buy more shares. Over time, the gains will be more than the losses because of the upward trend our markets have.
If you haven't already, why not start now? Doesn't seem to be a bad time since it's been a year since the market peaked. That way, you can ride your way down to the bottom.
Do you agree? If not, I would love to hear other thoughts.
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