Stock Market Time

With diversified investing comes a natural ebb and flow of assets. Right now I think the stock market might just be close to the bottom. Why? This thought actually comes from my analysis of the Forex market. When a pair is getting ready to breakout after a long downtrend, it usually has small jumps up, a stairstep pattern rather than a quick break.

With good earnings coming-in so far it seems that these small jumps could propel the market into a nice solid breakout. How long will the breakout last? This is the real question. I usually like to set a goal and once I hit it end the trade and collect my profit. The problem is that human nature tends to be greedy. When you are making lots of money, with seemingly no end, why stop a good thing?

If you ever watch "Deal or No Deal" then you have seen people whose lives would be changed by just $50,000 turn-down offers for $300,000 or more, just to lose it all in the end. It is this greed, the need to grasp beyond what we can attain that pushes us past the point of no return. That is why it is absolutely essential that you set at profit margin you are happy with and stick to it.

Right now I think the stock market is due for a good jump. As an impatient trader I'm happy to sit with some great stocks for a few weeks and take a 30% or 40% return even if in three years it would be a 70% or 80% return. Why? Because there is no guarantees. I would much rather make 30% or 40% than lose 10% or 20% - wouldn't you? Try to fight the need to be greedy, set goals and stick to them! It's stock market time. Need a little headstart? Check-out ATN has gone up 10 points in the past 2 weeks, oh, and it has a 6% dividend.

Remember, with diversified investing comes balancing of assets. Focus is always essential to success so make sure to keep your energy directed towards what strategies offers you the greatest return at the current time. Happy investing!

Welcome to Rare Wisdom

Welcome to Rare Wisdom - a blog about how to become a truly diversified investor. I currently actively invest in stocks, mutual funds, forex, and domain names. Rather than just focusing on having a great stock portfolio or some valuable domain names I work on all methods at once.

I enjoy learning about investing and am easily inspired. Forex has been one of my latest passions and has provided great returns for the second half of 2007. I have invested in stocks for over twelve years but moved most of my money out of the market around August of 2007. I use both mutual funds and money market accounts to grow money in times where the stock market might be a bit too volatile.

With the market at what I think is a possible bottom I am beginning to move my assets back into stocks from my mutual funds and money market accounts. I use domain names to generate both a passive income through advertising and sales commission as well as through the sale of the names themselves.

To be a truly diversified investor I strongly feel that you have to diversify your investment types. It's not enough to just have a diversified stock portfolio. With each new investment comes a new world of potential. I hope you enjoy what could just be rare wisdom.