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 How do you start with stocks?
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Additional Details
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philip H
Should I sell all my stocks and get out of the market or is it too late? I lost $ 100 ,000 so far?
                     
 




noble8fold
Rating
Take a good look at what you have and do not make panic or quick decisions. The amount you lost needs to be looked at as a percentage.You lost $100,000 but did you start with $103,000 or $200,000? I'm guessing you probabaly lost 33%-50% like most people. Let's work examples out taking the 50% figure for clarity. If you started with $200,000 and lost 50% to now be at $100,000, you would need a 100% increase to brake even. $100,000 + $100,000 = $200,000. That's just to break even with where you were before losing 50%! If you gained 50% ( percentage equal to your losses) you would have $150,000. That's still $50,000 (25% below where you started). You do not want to be in a position where your money needs to double to break even. So, I would sell at least some of it and look at other stocks on the rise. Of course there is nothing wrong with liquidating completely and staying on the side lines for awhile. You can do this by staying in cash account reserves with broker or doing a 3-6 month CD. There's nothing wrong with locking in a guaranteed rate of return and illiminating any possibility of losses for the next 3-6 months. The first rule of investing according to Warren Buffet is do not lose money. The second rule is never forget the first rule. I am not excited about guessing the bottom or taking anymore hits. I have put most of my money divided between a 3 month and a 6 month CD. My 6 month CD will mature a few months after the new president is in office. This givesme time to see market reactions to the changes.


short_pale_n_ugly
Rating
If you're staking the remaining $X00,000 on what people say in yahoo answers, i don't think you should have been in the market in the first place.

The essence of market is risk. You put up money that you can risk losing. The idea is to sell when it goes up, not when it goes down. Why would you sell now? Do you know it's going down? Do you think you will find the answer here?


Investors_noob
you may break even by shorting stocks now. all you need to know is which will drop the fastest. good luck


Blazenskyy.com
Rating
I reccommend if you have your stocks in a cash account to sell so you can take them off your taxes. Buy back better stocks with more potential when the market comes back or better yet buy mutual funds or ETF's to reduce risk by being better diversified.

It's all about risk my friend - look at your porfolio and make sure you have the right investments for the long term.


Nick Z
Rating
It depends on which stocks you own. Some companies such as Toyota are in much better shape than others, such as Ford and GM.

If your money is invested in companies that have good balance sheets, good business prospects when the economy recovers, and not too much insider ownership (Large shareholders, who are also company executives, often give themselves preferential treatment at the expense of common shareholders). Then you have a good chance of recovering your paper losses by staying invested for the long term.

But if your money is invested in companies that have a lot of debt and might go bankrupt during the current recession. Then of course you should sell. Because if you don't sell, then you may loose all of your investment.

Some paper losses are temporary and some are permanent. And it all depends on what kind of companies you've invested your money in.


JohnGalt
Rating
Nobody can answer that, but here are my rules.

If you can't sleep at night or you dwell on your losses, get out. You can always get back in.

You do not have to earn it back the same way that you lost it. No need to stick with losers "until you get even" as one poster suggested.

You do not have to be all-in or all-out. Pros do things in steps.


rlridley
Rating
Hold, because if you sell now you will lose that money forever. You may recoup your losses if you hold. You may even experience gains. But you have to hold for that to happen.


Phoenix Fire
You only lose money if you sell. Hold and wait. Don't bail out when it starts to look bad. It's too late for that. You'll just lose more money.


Crickette
I would sell your stock and buy silver. We are headed for a depression and you don't know when that will happen. The longer you wait, the less your dollar will become. The US is bankrupt and no one in government will tell you this. The longer you wait the less your dollar will become. Go to YouTube and watch videos of people that are smarter than me. I would never knowingly lie to you or anyone else.


Sniped101
I'd stick with the market for the long run, its far too late to sell out. I don't see the market getting a whole lot lower but of course it does depend on what specific stocks you have


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