Correction

[Gunnski]

This market correction is very painful for many. The positive side is, this is long overdue. Time to get out your pencil & start working your watch list(s). Hopefully there will be some opportunities when things stablize.

[mitchman333]

Agreed on the Correction - Unfortunately not the best week for me to start online Investing....!

Although this site really rocks and helps a ton as I do my homework.

- Mitchman

[macbhoy]

I sold Ebay and CTSH on 3 reds. Seems like red arrows are everywhere, but we're in it for the long haul. I agree guys, it really is a good time to closely watch our rule one candidates.

[Gregj]

Did you sell Ebay and CTSH just now or at the beginning of the day?

[gymmbo]

Whooo Hoooo!!! Let the rollercoaster begin.

I was fortunate that I am still paper trading. I took only modest hits in my virtual world, but I will be keeping an eye on this to see what happens over the next 10 - 30 days to see if this correction is just a blip or more of a long term sell off. It may be a good time to pull some money out of the market and take some profits (or cut losses) as the rest of the week may be a good indicator.

I am smelling a little blood in the water (insert theme music from "Jaws" here.)

[phideaux]

This is truly a first for me...I'm out of all my rule 1 stocks with profits in every one, ranging from 1% to 16%.

AMAZING!

Now, if things would only work out that way all the time...

phi

[Gunnski]

Nice job "P". I think there will be some real good value out there when the smoke clears. There may be alot of buying back on Wed. & Thur. I am going to hunker down and get may watch list updated, follow the active sectors and get in with the tools.

[phideaux]

Couldn't agree more. Now is NOT the time to get emotional. Let's all look at our possibilities and consider the technicals..and BE PATIENT!

phi

[npg]

I remember a similar correction about this time last year...

Could this be a cyclic event? Could this have something to do with results and reports due from the big guys to their clients (profit taking?).

Anyhow. For me certain catalysts I hoped for did not materialize so I jumped off the train and punched my sell orders into the system before market open. After I did, it looked like the positions were about to recover and to my amazement, on my return later this evening I found out that they took a further dive down. A quite considerable dive in fact.

Was I lucky? Deffo!

But then again I forced myself to be disciplined and not hang on to stocks whose catalysts have evaporated and whose indicators showed them to be overbought. I knew I was treading on a thin line with them at current market levels and was happy to trade in a 1% loss in order to preserve previous gains from last year.

Right now is the riskiest period to invest if you read Ben Grahams books. The markets are at all time highs which is the riskiest of moments.

So, even if some of you made some losses, don't be discouraged. Watch the slide and look for broken stocks to scoop up the bargains. Make sure it's not their business which is broken though! Forget the indicators and price level when you want to buy. Make sure you do understand what is going on in the business and what edge the company has over it's competitors. This is far more important than calculating a MOS and watching for arrows popping up somewhere. Make sure you can explain why you want to invest in the company you chose. If you cannot, then don't. This forum is an invaluable tool for talking to like minded people about your stance and to test your thesis before committing your hard earned cash. A post in this forum and a few flames are going to hurt far less than the loss potentially awaiting you if you get your facts wrong.

[jmbreci]

Originally Posted by npg

I remember a similar correction about this time last year...

Right now is the riskiest period to invest if you read Ben Grahams books. The markets are at all time highs which is the riskiest of moments.

Not quite...the DJIA may have been at an all-time high, but the NASDAQ is/was not even close...actually, it was only about halfway there. But the correction/pause (whatever it will be) was coming for a long time.

Now is the time to start looking again for those beat-down stocks...also the time to start looking if you are looking for some deals on the long term ones as well.

I have one that I am absolutely purchasing in the next couple of weeks, but that is a long term investment. Other than that, I am starting to look at some of the ones that I think I missed on their upward swing to see where I might be interested in them again since it has been a while since I have looked closely at the stocks.