Bad Markets are Great Opportunities In Disguise

You wake up, go through your morning routine and if you do have them, you check your stocks. Then bam! The Dow Jones has already dropped 150 points and it's only 11AM. After seeing this, you check your stocks to see if they've fallen to. And damn it, they did. Some of your stocks are down big, 5, even 10%. Soon, you are surrounded by red price changes, then panic sets in.

"Omg, should i sell right now? What if the market goes lower? Maybe I should get out and go back in when the market is hits a bottom. What do I do?"

This maybe a common feeling when people see the market or their stocks drop in price. This is a emotion everyone feels when they first start. It's natural and even fair. However to be successful in picking common stocks, you need to train your emotions to react differently to such price changes.

Let me introduce you to Warren Buffett. Now, the 4th richest man in the world (previously 2nd), Buffett ignores the ticker symbols. He doesn't panic if the market sold off heavily, instead, he wishes for more of those opportunities. In fact, it says he wishes to see a few depressions before he dies. Start training yourself to be excited with market sell offs. Why would someone want that?

Because when markets sell off, even great companies go down too selling at cheaper prices. Sometimes technology will lead a big sell of and an industry totally unrelated will get sold off also because of the pressures. These are the opportunities we should be looking for.

A good idea is to build a shopping list of stocks you would like to buy if the price is right and if the market sells off big, start loading up. That's how we can make money.


When there is a big sell off, i study the market and see what is causing it. Usually, I spend more time on these days sifting through my watchlist and seeing if there is anything I can buy. I haven't mastered my emotions yet, but they are definitely reacting better to price changes.

"When people are fearful, be greedy. When people are greedy, be fearful."
quote by Warren Buffett


Next post: Characteristics of great companies..in my opinion.

- James Ung

First of many blogs to come!

Thanks to the Fatmeister (Fatty), I now have a blog! This is very exciting. Here is a few things I will be using this blog for.

1. I have always wanted a place to write down my investment idea. What better place than to do it online and share it with everyone else. I will be sharing my thoughts, beliefs, and ideas about certain investments, principles, and philosophies that I believe will benefit an investor.

2. Book reviews and important findings. This will be a great place to quote great people and their ideas. It will also help keep reference of current readings.

3. Hopefully this will be a place with numerous discussions. I would love to have feedback and thoughts of others who are interested in sharing their opinions (or bashing on mine). Please, I encourage all those who even hesitate writing to write and share!

This is definitely going to be a work in progress like an ever evolving painting. I'm not sure where it will go, but hopefully it will meet and exceed my expectations and yours.

Hmm...what is my next post going to be about. I know, I'll write about why Warren Buffett is the best investor of all time and how you can do the same. Stay tuned!