Stock Market For Dummies - Investing in Down Markets

One of the absolute most difficult things about the stock market for beginners is owning stock in a down market. Today is March 1, 2008 and we have just had the 4th losing month in a row for the stock market, a first since 2002. The Dow lost over 300 points yesterday and things are not looking rosy.

It is times like this that it is difficult to be involved in stock investing. Many people who have little experience tend to panic when the stock market goes down so much. It is hard to know what to do. It is difficult to sit by and watch all your stocks and hard earned money go down almost every day.

This is stock market investors learn about own risk tolerance. Some people are better able to deal with the daily ups and downs of the stock market than others. If you are one of those people that likes to know that your money is always safe, perhaps stock market trading is not for you. However, if you can deal with losing your money day after day in hard times, and perhaps even buy more stock when that is happening, then investing in the stock market could be the right thing for you.

The stock market for dummies is a tough place to be in down times. Over time, you will learn to deal with the level of risk tolerance that you feel comfortable with.

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