Thursday, February 05, 2009

Trading Tips for February 2009

Before you jump in, read this post.

As of February 5, 2009

Dow Jones Industrial Average ( DJIA ) Close - 8063.07 Up 106.41
Nasdaq Stock Market Close - 1546.24 Up 31.19
S&P 500 Close - 845.80 Up 13.57

The stock market opened weak and then surged on word of a stimulus package vote today. So, is hope in the market now back? We don't now. Will it still go down to 6,000; we don't know.

What can you do?

What will I do is, if I have 1K now (hypothetically), I will divide it to 20, the top being 20% less than the second, and the 20th being the largest- the base, if you know what I mean.

Place buy order now on blue chips using the least and top most amount. And buy every 100 fall of the Dow, using the second, and the third amount and so on until I invested the base when the market is down to 6000 - if it ever does.

I think there is no way for it to go but up - sooner than later.


PS: I am not a pro, ask guidance somewhere else. Trade at your own risk.