Daily Market Update September 9, 2008
Stocks fell hard today after yesterday’s strong advance. The Nasdaq dropped 2.6% and the NYSE tanked 3.6%. The DOW shed 280 points, giving back the bulk of yesterday’s gains.
Oil fell $3.08 to $103.26. It was an ugly day for financials and resource related stocks. Lehman Bros. fell a massive 45% as the broader XLF financials ETF lost 6%. The XOP oil producers and explorers ETF dropped 9.5%. The GDX gold miners ETF lost 9.2%
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Daily Market Update
September 3 , 2008
Stocks fell again today on concerns over growth of the world economies. The Nasdaq fell 0.7% and is holding at its 50-day line. The NYSE lost 0.3% and closed below its 20-day moving averages. Both indexes traded in slightly higher volume according to preliminary figures.
Oil lost $.38 to close at $109.33 but that hasn’t stopped the oil explorers and producers group from falling 4 days in a row and about 15% off it’s peak. Steel stocks were also weak on global growth concerns.
IBD is still calling ‘Rally Under Pressure’ as the indexes battle to stay above their 20-day moving averages.
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How many stocks should I own?
August 21, 2008
How many stocks should I own?
The amount of money you want to invest in stocks is a personal decision that you and your financial professional should discuss. Once you have made that decision, this is the number of individual stocks you should own to maximize your chances of real success.
If you own too many stocks, your results will be “watered-down” if you get aboard the one or two “super-stars” that can really propel your portfolio higher.
Amount To Invest In Stocks and the Number of Stocks to Own
$5,000 or Less: 1-2 Stocks
$5,000 - $10,000: 2-3 Stocks
$10,0000 - $25,000: 3-4 Stocks
$25,000 - $100,000: 4-5 Stocks
$100,000 - $1,000,000: 5-6 Stocks
$1,000,000 - $5,000,000: 6-8 Stocks
Over $5,000,000: 7-8 Stocks
Some traders enter the market by buying 1/2 positions in up to 10 stocks and then sell the weaker acting stocks and move the money to the stronger ones.
*These are just guidelines and represent the opinion of the author. This is not investment advice. Always consult an investment professional before making any investment decisions. Trading involves risk. Always trade responsibly.
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