Black Tuesday

Yesterday was the darkest day of the stock market since Sept. 11, 2001. Dow Jones plunged 416 points, moved by the bad news from Chinese market and the end of bubble economy in China.

This proves a few points:

1) Always have cash on hand so that we could invest whenever such a good opportunity comes up. Our portfolio looked totally bloody except for one stock. Our total loss during the last 2 days averaged almost negative four percent. Dear me, we would not want to beat the market this way.

2) Don't put all the money in the stock market because it might not be immediately liquidable when you need cash.

3) Research before investment and purchase at the best opportunity. If investment was made at the lowest price point for the most promising companies, earnings will not be washed away by a down trending market.