Glad to have you here at The Stock Talk. Let me start off by telling you a little story. Yesterday I expanded my portfolio just a tad by buying some stock in energy. I bought around 100 shares of Cenovus Energy Inc. (CVE). This is a smaller investment than I normally go with (only $2000), but I didn’t want to get too ahead of myself. What caught my eye about CVE was that it was almost at the 52 week low; which usually means to buy. Unfortunately, CVE went down another 7.7% today, which always gets me a little worried. However, being the seasoned trader I am, I know that I need to hold on to it. It will go up; it always does.
I was researching other stocks yesterday. If I had more money to trade at the moment I probably would have bought them too. Fortunately for me, the others went down as well. Overall, it appears it was just a bad day for the stock market. For those of you who are curious, I was also looking at Marathon and Emerson yesterday. I would recommend anyone to purchase these stocks and hold on to them. They are long term and they WILL do well given the correct amount of time.
I always give this advice to anyone who is beginning to develop their portfolio or has plans to buy their first stock, when in doubt GET OUT (WIDGO). If there are accounting problems, problems with upper management, or any other public knowledge that lowers the companies’ reputation and will potentially hurt the company in the long run, then you need to sell ASAP. Fannie Mae is probably the biggest example of this. When I heard they were having trouble with accounting I sold my stock for $60/share. Less than a year later, ownership of Fannie Mae stock was completely worthless. Talk about getting out at the right time!
This is what the Stock talk is all about, getting in and out at the right time. Here we will discuss buying and selling strategies and this to look out for to maximize your investments. We will also be getting into finance, savings and other money related habits that will benefit you down the line. Thanks again for stopping by.