My Online Trading Update

30 Days ago I mentioned that I had picked up some Google stock.  While it is currently down today from where I bought it, it has been up as much as 10% in the last 30 days, specifically the day after they reported their 3rd quarter earnings.  The economy and market as a whole, however, has been in a bit more then a slump and Google has been drug down with them.

Many expected some type of post election market rally, and quite the opposite has happened as should have been expected.  When something is supposed to occur in the stock market, it won’t.  It’s just the way it works and is reason number 1 why you should never act on a stock tip or general recommendation.  BUT, that’s not to say that the market and many stocks won’t be up in 60 days and 6 months from now.  The market hasn’t been as low as the day I said a bottom had likely been put in and I still believe that was the low we are going to see until the next cycle comes around.

You shouldn’t trade with a short term horizon as you will inevitably sell at just the wrong time.  Give yourself a longer time frame to work with, and at some point during that time you will likely see a nice return on your investment.  Remember, 10% in a couple months time is NOT a bad return.  Try getting that at ANY bank and you’ll see just how far off it is.  A few nice small to moderate gains every few months add up to a great annual return.  Don’t micro-manage your trading account.  You won’t win doing so.

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