At 8:30 AM, the U.S Department of Labor reported weekly jobless claims rose to 496,000. This number is significantly worse then Wall Street economists expected. Consequently, the stock market was down 150 points at the opening. The day before, the Dow closed up 100 points. Ironically, every day there is a story as to what causes the market to move in one direction or another. In retrospect, last year’s daily trader achieved better financial gains than the long term investor.
Going forward, how should an investor trade ? A investor should choose a few stocks for a long term position. On a day that the market is down severely, the trader should purchase those stocks. ETF’s are a great choice to make for investment purposes. Some choices include ‘QQQQ’ ‘XLF’ ‘XLK’ and ‘DIA’ . As the market rises, consider selling those positions. Until all potential world problems significantly decrease, this is an important strategy for an investor to follow. Resolution will take years.
‘BRCD’ was trading today as high as $5.75 a share. If you purchased the stock three days ago as recommended, an investor would have gained over 7% for three days. NOT BAD!