Hi Y'all,
The ASX has crashed quite a bit this last week hasn't it? Mainly on the back of the Chinese market collapses. Do remember though that the massive rises in China (150%) over a year or less were made mainly by people believing the market was unstoppable and they hit the borrowing trail. This is where you buy shares for 10% of their sale price on the basis you gain what it does.
Of course the down side is if it goes below where you borred at you have to cough up the extra 90% of what you bought. So people go broke real quick. Lesson? Never borrow to buy on the chance of a rise.
The ASX today is almost at 5000 points, my last barrier was 5400 and the market has just rushed through that. The 5000 mark is where the next barrier normally stops a decrease. SO I'm waiting but doing nothing right now.
Also remember that as the market rises again, as it will, everything you bought last week is likely to become a winner. SO don't paqnic and sell at the bottom of the market.
Today's market is down about 95 points, huge drop, but my portfoloi has gone up a few hundred. The reason for this is I got out of banks and all energy some time ago. They are where the current falls and rises are. Trouble is you don't know which rises are real or just sucker rises, designed to get you in. Don't fall for it.
Sit pat for the moment and see how we go with the 5000 barrier.
The ASX has crashed quite a bit this last week hasn't it? Mainly on the back of the Chinese market collapses. Do remember though that the massive rises in China (150%) over a year or less were made mainly by people believing the market was unstoppable and they hit the borrowing trail. This is where you buy shares for 10% of their sale price on the basis you gain what it does.
Of course the down side is if it goes below where you borred at you have to cough up the extra 90% of what you bought. So people go broke real quick. Lesson? Never borrow to buy on the chance of a rise.
The ASX today is almost at 5000 points, my last barrier was 5400 and the market has just rushed through that. The 5000 mark is where the next barrier normally stops a decrease. SO I'm waiting but doing nothing right now.
Also remember that as the market rises again, as it will, everything you bought last week is likely to become a winner. SO don't paqnic and sell at the bottom of the market.
Today's market is down about 95 points, huge drop, but my portfoloi has gone up a few hundred. The reason for this is I got out of banks and all energy some time ago. They are where the current falls and rises are. Trouble is you don't know which rises are real or just sucker rises, designed to get you in. Don't fall for it.
Sit pat for the moment and see how we go with the 5000 barrier.
No comments:
Post a Comment