I’m not saying I traded these, I’m just saying I talked about buying these stocks last Wednesday when things were really starting to look bad on the street.
I don’t trade commodities on their own as it just isn’t my line of expertise. Heck, I’m not a professional advisor or an analyst, but I do know how the markets work and what kinds of decisions you can make to help mitigate your exposure and risk. The most important thing I have learned in my years of trading is not to give in to panic.
The Securities and Exchange Commission has decided that short sellers are to blame for the current crisis which is dead wrong but what’s done is done and now you need to adapt to the the new rules of the game. Without traders being able to short some 800 or so financial stocks, you need to consider other alternatives for that portion of your portfolio.
I for one don’t have a completely balanced portfolio but I know where my risks are and I’m ok with that. I also have a set timeline for my stocks to perform within and I have targets for the stocks I trade. Rationalizing why you buy any given stock is only part of the equation. Knowing the catalyst or event that is going to drive the price is critical and if it doesn’t happen, you can get stuck holding a dead fish so to speak.
No strategy is perfect but using some key criteria I have talked about in this blog can help you figure out where your ideal entry and exit points are. Oil had its biggest single day gain ever and commodities continue to rise. Don’t be too rash to jump ships here. Solid financials are still out there. Goldman Sachs(GS), Morgan Stanley(MS) and Wells Fargo(WFC) won’t be going out of business anytime soon and tech is going to see some gains here as we move into the holiday season, yes even in this recessionary market.
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