Stock Market Volatility

Discussion in Savings & Investments Plans started by Onionman • Jan 28, 2016.

  1. Onionman

    OnionmanActive Member

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    Has recent stock market volatility scared you off from investing?

    We're all told that investing over the longer term helps to smooth out the impact of the ups and downs of the stock market. Unfortunately, we're all emotional beings that don't necessarily think so far out. So has the volatility over the last 6 months stopped you from doing something you had planned to do previously?
     
  2. BrandonScooterman

    BrandonScootermanActive Member

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    If the market volatility worries you then you have no business investing in it.
    Pick something safer like a bond or a GIC or something to that effect.
    Market goes up, market goes down.
    Over the long term the trend is up so you just have to ride the wave,
     
  3. xTinx

    xTinxWell-Known Member

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    Well if you keep your investments to a minimum or what experts would call "safe zone," then there's no cause for concern. Market volatility only affects huge stocks and investments. If you do it small-scale, you're relatively safe. But of course, never be too complacent.
     
  4. gata montes

    gata montesActive Member

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    As allowing emotions to control investment decisions can be detrimental in terms of getting a favorable result - a profitable return.

    I too would agree - that if the constantly shifting highs and lows of the stock market are something that would worry you - then its probably best to stay away from this type of investment and look at investing in something with a bit more stability - especially as - not only is stock market volatility inevitable - but sudden declines are far from rare - as they're generally part of the normal market cycle.
     
  5. Corzhens

    CorzhensWell-Known Member

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    Since our first shares of stock of Piltel (Pilipino Telephone that handles the pager of the olden days) went down from 20 pesos to 1 peso, we are very discouraged. But now my employer granted me a substantial amount of shares of stocks as reward for my loyalty. I have no intention of selling it so it will just be like a souvenir until the day that I would need the money. My nephew who used to be a stockbroker said that the price of the stocks I have is very stable for now.
     
  6. thenextGeek

    thenextGeekActive Member

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    Getting rid of your emotions when it comes to stocks is always the way to go. However I have to admit that not everyone is capable of doing this especially if you are betting your future in the stock market. As for myself, I've always put a part of my money in the stock market simply because I have the resources, time and future growth potential, to do so. I finally understood why my mentors often told me to start young. When you are younger, the ups and downs of the market is a non-factor because you have a large buffer with your young age. It becomes a different story though when you are near retirement and that's when you just started investing. The margin for error becomes too little that it often causes investors to do moves that they'd soon regret.
     
  7. gracer

    gracerActive Member

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    I've been on a close watch over the market lately and I'm actually considering on adding more to my investments while the prices of shares are low. There has been a very big difference with the prices of my shares from last year and the only thing I regret was investing too early. I wish I could have invested at this time when stocks are at their lower values. I'm positive though that things will soon catch up and the global economic downfall will soon subside. :)
     
  8. Denis Hard

    Denis HardWell-Known Member

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    One shouldn't let stock market volatility scare them. Stock prices are always changing and though it's easy for someone who is new to investing in stocks to lose their money, they can limit their losses if they buy value stocks only and also diversify their investments. That should to some extent keep their investments safe. Even if they lose money, they'll lose very little.
     
  9. gracer

    gracerActive Member

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    I think the market is actually beginning to creep up again. Since the beginning of the month of March, my shares started to continuously increase in value again and it's a very welcoming news for me. It's still too early to celebrate as the month is just beginning but at least I'm beginning to see a positive change. :)
     
  10. Ke Gordon

    Ke GordonWell-Known Member

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    Well, I haven't heard of any wild fluctuations in the market as of late so I guess that is a good thing in terms of overall stock stability. I think that the market always has some basic ups and downs, but it is to be expected to a certain extent. I would not worry about investments at this time, unless you have investments in oil, that is apt to be a wild ride for the next several years.
     
  11. Lushlala

    LushlalaWell-Known Member

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    In as much as I'm very interested in the stock market, I can't really get my head around the whole thing. Some major companies here have been selling their shares to the public and everyone's been scrambling to buy some. I was seriously considering jumping on the bandwagon, when I heard two industry experts saying it wasn't advisable at the moment. I'm not going to lie; that, on top of the fact that I'm no expert on the subject ,made me too nervous to invest. For now, I'm hanging fire.
     
  12. djdontpay

    djdontpayActive Member

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    Market volatility? Well, it doesn't bother me because the more volatile a market the more earning opportunity there is, contrary to what a lot of people think.

    However, I don't think individual or retail investors should ever "invest" their money in the stock market or even call it an "investment" because its a gamble at best. How does one compete with hedge funds, super-computers and professional traders? How do you know that someone is not manipulating a stock - when the SEC can't always find out, what makes you think you can?

    So, it's not about volatility. Individuals should never put their money into stocks unless they're very sure that losing money is what there goal is. I have written extensively about it in the past.

    I recently wrote this piece about actually investing and getting high quality 7-30% returns without becoming part of the scammed crowd:

    Please Log In to view this link!



    A return is way more important than trying to pretend to be smarter than everyone else.
     
  13. gracer

    gracerActive Member

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    Thank you for sharing your hubpages post @djdontpay@djdontpay. It's actually my first time hearing about peer-to-peer lending. I thought at first that it was about the real person-to-person lending type. I think the idea of peer-to-peer is good though so I'm going to check out the sites you mentioned soon. :)
     
  14. BrandonScooterman

    BrandonScootermanActive Member

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    At first I though you were just trying to promote some scam site.
    Those are some really great tips!
    I am actually looking into the confiscated goods action right now.
    Well I am more looking into purchasing property that's been repossessed by the bank for non-payment and is now being auctioned off by the municipal government (something about not paying taxes?)
    Also the local police hold an auction here once a year, I have yet to buy anything but my uncle picked up an antique Harley for next to nothing!
     
  15. djdontpay

    djdontpayActive Member

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    Glad I could be of some help @gracer@gracer. I burnt through 90 grand in brokerage fees and failed experiments before I started making money. So, everythiing I say, comes from a ton of trial and error. I like P2P a lot.

    Wow, I would love to get one of those at an auction. BTW, repossessed properties can be bought quite cheaply. A friend of mine bought a nice big house back in Virginia back in 2009 for just $60,000. And you won't believe that the place has everything that a suburban home needs and it didn't need to be renovated either!
     
    #15Mar 12, 2016
    Last edited by a moderator: Mar 14, 2016
  16. Kavon

    KavonNew Member

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    This depends on what your investment goal in the stock market is. If you're trying to profit from price differences in the short-term, then volatility is something you need to consider. But if you're investing long-term, the day to day changes in price shouldn't be what you focus on. By long-term investing, I mean that you're investing in that company based on the company's data. You should be focusing on the company's performance, not on the volatility of its stock.
     
  17. remnant

    remnantActive Member

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    The stock market is not for the impatient or the faint hearted. But there is a way round this if one wants quicker returns. One should invest in different stocks also called portfolio diversification and then operate them from a CDS account. On average, one should be cable to see profits popping up from time to time. Some of these profits should be reinvested.
     
  18. remnant

    remnantActive Member

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    The stock market is not for the impatient or the faint hearted. But there is a way round this if one wants quicker returns. One should invest in different stocks also called portfolio diversification and then operate them from a CDS account. On average, one should be able to see profits popping up from time to time. Some of these profits should be reinvested to increase their value or diversify further. Its all about strategy.