Sunday, June 20, 2010

Why I didnot BUY Fnm and Fre is

I was trading FNM and FRE, last year hoping the rebound of market is going to happen, as per the Mantra of Shares, Buy when it is low and selll when it is High, The mantra is not working for all stocks, as FNM and FRE looked to me like a luxorious Titanic, which will be ready to sink preety soon, I resisted my temptation to buy, as it was looking obvious to buy in huge sums and hold it for two or three and make fortune out of it, there was some thing hitting my brains not to do the way pundits are asking you to buy when it is low, the underlying factors of all these articles are they are written not buy warren buffet or other traders who are making fortunes, its written by a interpreter who is trying to analyze, in the sense they can be right or wrong, they them selves dont know, cause if they have known they would have been a big name in the world of investing.

Underlying message is that what is low is not always a hot buy, a hot buy is something where there is a performance and consistency factor.

I am glad I did not pour in to a sinking ship....

Always understand your patterns of investing is not to try to loose few hundered dollars, as that is way it will dive into, you should be always sure of where your investment money makes even few dollars as profit will add to your profits savings.