Wednesday, November 7, 2007

DON'T PANIC

GOOG ended with a loss, today.

Let me explain: a loss in GOOG means that, at the close of trading, the shares were selling for less than they were at the close of the previous day. A loss in GOOG is just like the gains that you are familiar with, except that the direction is down, rather than up. This is represented by a minus sign (-) in front of the number that indicates the magnitude of the change. If the number is small, you're probably OK. But, if it's big, you may be screwed.

If GOOG ends with a loss on several days in succession, that is called a "downturn" or "correction". This is usually when most traders begin to think that they are screwed.

I hope that this has been helpful to you in this time of doubt, uncertainty and fear.

5 comments:

Stock search said...

Had to happen eventually - I lost about 25% of my gains but remain happy with my 75%.

Larry Blumen said...

Yes. It's a good thing. Builds character.

I'm curious about what your thoughts will be in the next few days as the drama unfolds.

If you come to an inflection point in your own thinking, and don't mind sharing it with a bunch of Yahooers, drop another comment in.

Stock search said...

I can drop in as things change. I
put all my goog into cash today after a 24K loss, which I expected to happen sometime. I am up $78K so far on

Stock search said...

I can drop in as the situation changes. I trade Goog options and a couple of others. Turned $14K into $108K and got jacked
up (22K-$) today by this guy Cuomo, who may be works with some of thesehedgre fund managers who support him.

Larry Blumen said...

Very interesting. I'm not smart enough to trade options.

Thanks for your input.