Through my years of investing, I have been asked that same question many times, "How to know that this is the market bottom?".
People are obsessed by buying low and selling high and that's why they are all eager to know where that bottom is so that they can buy at it.
However, the truth is that making good money from stocks doesn't even require you to know where the bottom is, you just need to know that you are close to it.
When to buy a stock? Suppose that your mobile phone costs 100$, and then you found an opportunity to buy a similar one for 20$ because people were afraid that mobile phone prices were going down so they were selling them at very low prices.
If you bought that mobile at 20$ won't you at least be able to sell it at 50$? Of course you will, after all its worth 100$.
So what if after buying that mobile one of your terrified neighbors sold his mobile for 15$, will this affect you?? What if another one sold it for 10$, will this affect you?? What is the benefit of knowing that the bottom for the mobile's market is 10$, if buying it at 20$ will surely make you good profits if you were patient? Can the stock market bottom be determined? No, it can never be determined, big financial institutions, major investment banks and even a magician can't determine the market bottom for the variables involved in price movements are far more than anyone's understanding.
So what should you do In order to make money?? Just make sure you buy things at a good price like the mobile you bought for 20$ and you will make money for sure.
You don't have to determine the stock market's bottom in order to make money, you just need to buy something at a good price and simple logic says that this good price is going to be somehow close to the market's bottom.
People are obsessed by buying low and selling high and that's why they are all eager to know where that bottom is so that they can buy at it.
However, the truth is that making good money from stocks doesn't even require you to know where the bottom is, you just need to know that you are close to it.
When to buy a stock? Suppose that your mobile phone costs 100$, and then you found an opportunity to buy a similar one for 20$ because people were afraid that mobile phone prices were going down so they were selling them at very low prices.
If you bought that mobile at 20$ won't you at least be able to sell it at 50$? Of course you will, after all its worth 100$.
So what if after buying that mobile one of your terrified neighbors sold his mobile for 15$, will this affect you?? What if another one sold it for 10$, will this affect you?? What is the benefit of knowing that the bottom for the mobile's market is 10$, if buying it at 20$ will surely make you good profits if you were patient? Can the stock market bottom be determined? No, it can never be determined, big financial institutions, major investment banks and even a magician can't determine the market bottom for the variables involved in price movements are far more than anyone's understanding.
So what should you do In order to make money?? Just make sure you buy things at a good price like the mobile you bought for 20$ and you will make money for sure.
You don't have to determine the stock market's bottom in order to make money, you just need to buy something at a good price and simple logic says that this good price is going to be somehow close to the market's bottom.
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