Did you regret not exploiting the previous downturn?
If you had invested in blue chip stocks around March 2009, plus/minus 1 or 2 months, and sold early this year, you would have doubled your investments. Even if you sold in October 2009, just a mere 7 months after the market bottomed, you would have made a tidy 60% profit.
NOW is the time to save up cash to exploit the looming recession again.
Forget about short-term trading. It sounds like a very attractive thing to do, but the time can be better spent on advancing your career, or building up a small business. In fact, just today, Sunday Times interviewed some rich HK guy who said:
“My advice to retail investors is to really go long-term and choose the best fundamental stock that pays a lot of dividends and sit on it. About 95 per cent of traders lose money, so don’t try to be short-term traders.”
I would add: (1) if you go long-term, make sure you buy at cheap prices; and (2) if you prefer medium-term trading, like I do, learn about market cycle investing.
How much cash do you have to exploit the coming recession?