Is it time to buy stocks and get rich?
Nov 3rd, 2008 | INVESTINGThere has been plenty of emotion running around lately as far as the markets go, and for good reason. It’s not easy to watch the markets dive as they did recently; such an event can easily twist up the emotions of the best of us. But, there is a bigger picture here to consider…
Some of the greatest investors agree: never let emotions get in the way of investing. If this is true (and, it sounds like good advice), perhaps it’s time to get up and dust off and start answering the question that’s been looming over our heads - is it really time to start buying again?
According to Dan Ferris, in his article How to Let the World’s Greatest Investors Make You Rich, some of the greatest investors are saying that now is the time to buy. Here is an excerpt from his article:
“Warren Buffett says to be greedy when others are fearful.
Peter Lynch says the secret to getting rich in stocks is not getting scared out of them.
More poetically still are the words of Nathan Rothschild, who told us nearly 200 years ago that the time to buy is when blood runs in the streets.”
Blood has run in the streets, many people are fearful and there are some solid stocks available at wonderful discounts. Perhaps now is not the time to be scared.
In light of all of this, why not buy? Well, what if the markets tank even more (you say)…
I’ve learned a thing or two about trading since investing in the Forex market… Particularly:
- Anything can happen, and it always does! Trading is all about odds and so you look for plenty of indicators that signal a particular entry in order to tip the odds in your favor. Still, all your indicators can line up the way you want and yet anything can happen after you put on a trade.
- Emotions and investing don’t mix, plain and simple. Put on a trade for all the right reasons and indicators and leave all your emotions at the door.
I like Ferris’s advice because what he’s saying is don’t be scared to invest. And, even better: if you’re too fearful to do it on your own, hand over the job to the experts (that is, buy shares in a company like Buffet’s). Beautiful, I couldn’t have said it better myself.
If emotions are not to be honored and action is required, it seems like now is a good time to buy.
It’s up to you.
To Your Success,
Eff Jay
effjay is the creator of WealthWeek.com. Apart from being well-read on a variety of topics regarding money & success, he has been involved in various successful entrepreneurial pursuits. He currently owns several thriving businesses and has become an authority about what works in the areas of business, making money & wealth accumulation.
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Great advice… I have my eye on a few stocks at the moment, but I think it could go down still and yet some of them went up… This post put a lot into perspective for me. Perhaps I’ve just been too scared to pull the trigger. The fact is, there are some great stocks on sale right now and they will go up eventually. Great site, thanks!
Justin - I’m glad you found the article useful. I really enjoyed the article Ferris put out, so I had to write about it. It just makes sense to me. As long as you invest with what I call ‘risk’ money (funds that you can loose without affecting yourself financially), your emotions will be in check. That is, they won’t haunt you if the market still tanks and you’ll have a better mindset in place that will enable you to hold on to the stock. Remember, Peter Lynch says “the secrets to getting rich in stocks is not getting scared out of them.” If you have risk money to invest, I would say do your research well and then buy!