Stock Market Investing Advice For A Recession

Here is a little bit of stock market investing advice.  When considering investment options look first to those that have fallen the hardest.  The old adage says, “buy low sell high”, and it is none sure that now.  The stock market has plummeted and since we are seeing so many companies reach new lows or all time lows then the adage would tell us that now is the time to buy.

Knowing this, beginner stock market investing would tell us that to maximize profit.  We should seek out those that have fallen the furthest and hope that they will rise equally as far as they return to the approximate level they were before the fall.

Because of the stock market crash, we are seeing many double or even triple digit stock prices become stocks under 5.00.  Assuming that these companies will not go bankrupt, and that they have a sound plan for regaining financial solidity, these companies have a very strong chance of returning to the same strength they were before the crash.  This means that in the worst case scenario, where you have a five dollars stock that was once a $10 stock you have a very realistic chance of doubling your investment by buying one is at five dollars.

However, just because a company now priced under five dollars does not make it a wise investment.  Remember that the stock market for beginners can be very difficult.  And that the best way to become good investing is to do your research and due diligence.  And this is always true, but especially true for stocks under 5.00.  So if you decide that you are going to purchase a stock that has fallen substantially be sure, and I mean absolutely sure, of your conviction that it will rise in price, and not actually go down to zero and cost you your entire investment capital.

Be the first to comment

Leave a Reply

Your email address will not be published.


*


This site uses Akismet to reduce spam. Learn how your comment data is processed.