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Varchild2008 (84.02)

How to handle Gigantic ups and downs in this market



March 24, 2009 – Comments (3) | RELATED TICKERS: BAC , AXL , BX

Since I am a moron.... This is basically a call to the investment community to share their advice.

The way I see it....I know ZILCH about Options.... ZILCH about shorting and I don't want to get into shorting even if I was Albert Einstein or the founder of Shorting.

So... How does one handle things when your portfolio gains $1,000 on Monday and loses $1,000 on Tuesday?  Sorta like when the market shoots up 500 points, you fully expect a huge point decline.

Jim Cramer wants his audience to sell today when everyone's profit taking.


Common sense tells me that those who profit take already took profits yesterday when the market was up 500 points.

My strategy remains the same.  Jim Cramer is full of it.  He is wrong.

Newbies in the market must adhere to a simple rule....

When everyone's buying up your stock to a glorious profit.... You Sell!
When everyone the next day is profit taking, shorting, selling your stock.....You Buy!!

Greedy when everyone's fearful.

Fearful when everyone's Greedy.

And Jim Cramer claims he takes the Waren Buffet approach?  Why hasn't Jim Cramer been fired yet?

Now... If you chose NOT to take any shares off....NOT to profit take yesterday.... Maybe you were simply busy and couldn't do so... Whatever...  You certainly don't profit take on a day the market drops 200+ points.

You either wait for the next rally.... Or you set up a SALE at your stock's current market price and sit on that sale for the next rally.

Am I wrong?  Is Jim Cramer Wrong?

3 Comments – Post Your Own

#1) On March 24, 2009 at 9:23 AM, dudemonkey (56.87) wrote:

So... How does one handle things when your portfolio gains $1,000 on Monday and loses $1,000 on Tuesday?

A long-term perspective.

The best advice I can give you would be to basically stay away from CAPS.  This community emphasizes short-term (less than 5 years) thinking.  Everyone is looking at the hear-and-now.  The most rec'ed post of the day is oftentimes GoodVibe's TA charting which, while incredibly intersesting, is of almost no value to the long-term (multi-decade) buy-and-hold investor.  He will be the first to tell you that.

If you can't stomach the volatility but still want to participate in the markets you're going to need to find ways to tune out the noise.  

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#2) On March 24, 2009 at 9:24 AM, dudemonkey (56.87) wrote:

It goes without saying that Cramer is no different than CAPS in terms of the length of his thinking.  CAPS and Cramer are both intelligent and experienced, but they're NOT playing the same game that you are if you're a long-term investor.

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#3) On March 24, 2009 at 3:08 PM, Varchild2008 (84.02) wrote:

Yea no kidding.. He gets bearish on stocks that have insane long term catalysts just cause there's no catalyst for the stock for the current year....and does that frequently.

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