This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

5 Money-Making Tips for the Panicky Investor

BOSTON ( TheStreet Ratings) -- With the stock market seesawing and investors pulling tens of billions of dollars from mutual funds in the past few months, now's the time to get back to basics.

As equities are down by about 15% in the past two months, as measured by the benchmark S&P 500 Index, individual investors have the chance to buy some of the greatest U.S. companies at a discount. That is, if they think the stock market will recover. Professional investors including hedge fund managers and mutual fund managers are worried about slowing U.S. economic growth, Europe's massive debt woes and the dysfunction in American politics.

So what's an investor to do? Here's how you can become a better investor:

1. Have a Strategy: This might seem obvious, but too many investors select stocks haphazardly. Whether you're a short-term trader or a five-year investor, set a plan and stick to it. Some of my biggest investing mistakes came from selling a stock prematurely because I heard a rumor that was ultimately unfounded.

Consider an investment in a stock for what it really is: a stake in a business. Given that, what's the basis for investing in this company? What are the catalysts that may propel the share price higher? What could go wrong? And will I sell if these things happen? Some other questions are: What's my timeframe for holding the stock? How much money do I want to make on this investment?

2. Don't Ignore Economic Events: You might think you're holding the next Apple in your portfolio, but if Greece or another country in Europe defaults, your stock is likely to fall regardless of its prospects. For many, this might be challenging to understand, but with investing comes the threat of financial contagion.

Contagion is typically caused by the default of a large bank and. When it happens, diversification is less effective. Contagion (you can think of it like catching a cold) is a concern now in that problems in Greece are likely to spread and hurt other European companies. The worry is that the U.S. gets sick and puts the final nail in the coffin for an already struggling economy.
1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%
YHOO $36.60 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs