Dear Reader, here is your latest money tip from the money coaches noteook:
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WOW! What a roller coaster ride!
You hear so much in the news about how the stock market has gone up… up… up… then down… down …down... You hear how people are losing lots of money. With so much change going on in the market and so little confidence in the economy, how do you keep from losing your sanity?
Here are a few tips the next time you hear how bad the market is:
#1. Turn the TV off!
Just because the market goes down for a time does not mean its time to sell. In fact, that may signal a buying opportunity. The object is to buy low and sell high. When we listen to bad news, we sometimes forget that when prices fall, that means things are on sale. Some people like when things go on sale. What about you?
#2. Take a deep breathe
When we hear bad news, our first reaction may be to get emotional. In the investment game, the first person to get emotional typically loses. Remember, you don’t lose money until you actually sell at a lower price. So if you want to be sure of a loss, sell.
However, before you sell your stock, make sure that you no longer believe in the long-term viability of the company, and that there is not a way in which you can reduce your cost without selling.
You may be able to reduce your overall cost of purchasing the stock before you decide to jump out the ground floor window.
#3. Remember the Alamo
When the brave soles of the Alamo decided to fight until the last, they had no idea that they would be remembered for their courage, strength of will, and forward thinking. The Alamo was not the war, but only a single battle. The market averages that are being spouted are not all encompassing of the entire economy or the indication of things to come.
Remember that historical information is not a prediction of future results. Even though the Alamo was lost, what country does in belong to now?
M aximize your dreams
O rganize to overcome obstacles
N etwork to net-worth
E njoy the moment
Y ield an increase
If you need further clarification on any techniques expressed in this tip, please e-mail me at coach@moneybytodd.com
I will be glad to hear from you.
End
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Resource
Todd A. Williams
Money Coach
Author of “The cattle upon a thousand hills.”
http://www.moneybytodd.com
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