Stocks Can Always Go Down

One of the things we are constantly reminded of in the stock market, especially at times like these, is that stocks can always go down.   You need to remember this always.

Even if you combine the best technical indicator with the most fundamentally undervalued stock and buy it on an historical up day, when all the planets align the stock can still go down.  Yes, it’s true and you should be aware of that.  

Nothing is fool proof.  Knowing that you have to look at this market and be short term bearish on it.  It has been in a downtrend for a while; it will probably not magically turn upward tomorrow.  In fact it will probably go lower tomorrow, so trading the downside is a very good approach right now.

Even though stocks are greatly undervalued it does not mean they will not go lower.  They can, especially if there is enough bearish pressure in the market.   So in the short term I am definitely bearish on the stock market.

Ok so what if you do want to look at now as one of the best buying opportunities of a lifetime.  What if you do want to get into one of these stocks trading at 1/10 their true value?  Is that okay?

Sure it is, Getting into fundamentally strong stocks that will probably not go under is always a great thing.   You just have to remember your time frame.  If you are buying undervalued strong companies you have to remember that is a long term commitment.

You are not going to Strike it rich tomorrow, In fact your stock could go down much further.  But you would be looking for the long term growth of the stock.  Remember there is going to be another bulls market someday, so why not prepare for it?

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