Couldn't wait on the sidelines - bought into the market

**Broken Arrow** · 08-24-2009, 09:22 AM

Congrats! Glad to hear it. Here's hoping to the forecast coming true!

**amedvedovski** · 08-24-2009, 09:25 AM

If you do it for fun then surely you can try timing the market. But please be aware of the fact that most investor who are doing market timing are wrong!
By getting out and getting in the market most likely you damage your overall performance. Do you know that the average stock mutual fund return ~9%, but regular investor doing the same ~3%? The primary reason is the fact that the reglar investor, like you, is jumping in and out from the market in the wrong time.
And don't make too much attention to various media pundits predicting S&P500 1150 or 650. Nobody knows what will happen!

Alex Medvedovski
alexfacts.blogspot.com
Twitter ID: @alexfacts

**Russell** · 08-24-2009, 09:50 AM

Thanks BA. What about you?

Alex, you're right and I've been bit before by trying to time the market. However, now my strategy is to buy stocks for the long term but if I see that they've appreciated a significant amount I'll sell them for a profit.

On the other hand, I've also lost a lot of money in mutual funds in my 401k...so that's not a sure deal either. Not to mention the expense ratios on most 401k mutual funds.

**KTP** · 08-24-2009, 09:53 AM

Wow, you have balls...you bought C?

I do look at that stock and salivate at the 5% or so increase it undergoes almost every day, but I do not have the nads to actually invest in it myself. Seems wayyyy too much like picking a number on the roulette board.

**Russell** · 08-24-2009, 10:25 AM

Well C has appreciated 70% since its troubles started and until now I didn't want to touch it either. And even then I just bought 200 shares that's all.

Of course, after I open myself up the mid-day trading looks to be going southbound, figures

**Russell** · 08-24-2009, 11:16 AM

Welp, it's almost the end of the trading day...apparently I (and the market) got spooked so I sold my VTI just above the break even point but I've kept USO and C for now since they were both smaller investments and two I don't mind hanging on to USO for a while.

One thing I learned from today's experience is the trading cost can cut into your profit when you do quick buys and sells. I gotta find a better option than the $7/trade that scottrade charges.

**Broken Arrow** · 08-24-2009, 12:11 PM

A lot of risky banks are highly volatile right now. Have you seen the way AIG shot up lately? On what, I don't know (well, ok, I suspect it's a better-than-expected earnings report from the financial industry in general). It's crazy. But anything that shoots up that easily can also fall down just as easily.

As for me, no, I haven't found anything worth buying just yet. Maybe I'm not looking hard enough, but I do look. Somehow, I have to be able to look at it and say, "Ok, there's enough upside to justify the downside, and the current market price looks good." But again, no luck yet.

Fortunately, my passive portfolio has been hopping so far. Well, ok, up 15%. Maybe it's not hopping, but at least it's benefiting from the current market trend.

But I'm sure there are opportunities to be had. I just have to be patient.

**Snodog** · 08-24-2009, 03:58 PM

Originally posted by amedvedovski View Post

If you do it for fun then surely you can try timing the market. But please be aware of the fact that most investor who are doing market timing are wrong!
By getting out and getting in the market most likely you damage your overall performance. Do you know that the average stock mutual fund return ~9%, but regular investor doing the same ~3%? The primary reason is the fact that the reglar investor, like you, is jumping in and out from the market in the wrong time.
And don't make too much attention to various media pundits predicting S&P500 1150 or 650. Nobody knows what will happen!

Alex Medvedovski
alexfacts.blogspot.com
Twitter ID: @alexfacts

This is sound advice.

Couldn't wait on the sidelines - bought into the market