If you only buy stock that is down wouldnt it eventually come up so you could not loose money? ?
I have never invested in stock. But I have noticed everyone worries about their stock going down. My thought is that instead of investing in companies the herd of individuals read about that seem like they will go up, why don't people invest in stocks that go really low that 9/10 will go up eventually? Isn't that a sure way to make money? During the Corona virus stocks are going down but if you buy lots of low stocks with all your money then once all these stocks go up wojldnt ghat multiply your investments?
- Anonymous1 month ago
If you can't spell "lose" you have no business invsting.
- SteveLv 61 month ago
That sounds good in theory, but it is not the case. Why would someone buy a stock in the first place? Reasons include that they are a profitable company with expected acceleration. A company thats stock has fallen hard is not likely a profitable company. It mightve once been, but it has fallen on hard times and if ever it does become profitable again, it will be a long time coming. Who wants to invest in a company like that? Especially when there are thousands of other stocks and many, if not most, of them are profitable. The other thing is if you were to buy an ailing stock, how do you know it will not fall further? Thats a very real chance. So why even flirt with something like that when there are much better options out there to take? You can do this with stocks like Apple, Netflix, Disney, Paypal, etc. because they will likely rebound from a minor loss, but its not unheard of for huge companies to fall hard. In the case of Apple and the such, it will likely be a smart move, because companies like that usually weather any storm.
- Anonymous1 month ago
no look at Sears, Enron, K Mart and JC Pennies.
- tiescoreLv 61 month ago
Enron never came back up, neither did every other company that had a liquidating bankruptcy.
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- Christin KLv 71 month ago
The market doesn't exactly work that way--yes, some low-priced stocks will rise--others will simply continue to lose money. That's the reason an investment plan like "buy only cheap stocks" will not work. There IS no sure way to make money in the stock market. It's ALL RISK. All of it. You can't count on any company to make money, you can only HOPE it does.
- StephenWeinsteinLv 71 month ago
No. Not all stock eventually comes up. You can, and often will, lose money, because many stocks keep going down and don't come back up.
- MichaelLv 71 month ago
The last time I thought like that I ended up buying a bunch of Enron stock..........
- D.E.B.S.Lv 71 month ago
If you buy a diversified mutual fund, then history says the value goes up over time. You might be able to make more with an individual stock, but then that is more risky. When the stocks went down earlier this year, not all industries recovered fully. Airline stock, for example, is still extremely low.
You also have to time it right and have cash outside the market when it does go down. If it goes down 10%, is that the bottom or will it go down another 20%? Wait too long for it to drop more and it's gone back up again.
- A HunchLv 71 month ago
Unless you are buying stock at $0, the stock can always go either direction.
The crystal ball doesn't say which stocks will eventually go longer and turn into $0, vs eventually increase.
- Wayne ZLv 71 month ago