Thursday, July 26, 2007
DOW in a Huge Downer
Wednesday, I got stopped out of all but one of the stocks I personally manage online. When that happens, I get a little sad and mope around for a while. Last night I checked my portfolio, saw the stops had been activated and went into mild moping mode before going to bed.
I told myself before turning in I might have tightened these stops a little too much after Tuesday's decline and the market would probably shoot back up today, leaving me out of the party.
Today at just a little past noon MDT the Dow is down almost 400 points. UPDATE FINAL: Dow down 311 at the close.
All I can say is THANK HEAVENS for getting stopped out of these stocks yesterday thereby locking in the very nice gains I've made over the past six months! In other words, yesterday, stops enabled me to ring the register, and take some good profits off the table.
I'm happy I've learned a little about principled investing from reading Investors Business Daily over the past 7-8 years. Principled investing takes buying and selling out of the emotional realm of fear and greed and into a more rational mode of principles decided ahead of time and emotions.
A big Market drop is like a gully washing thunder storm, as it washes out all the excessive buying and exuberance, creating new opportunities to make money, often in new sectors.
In gratitude today, I am adding IBD to my sidebar links. In my opinion, it's the only financial newspaper in the world worth reading. You can have the Wall Street Journal in my opinion.
I'm an IBD woman all the way.
Larry Kudlow, a real pro, puts things in perspective on the market correction.