I had to laugh the other day when one of my “smart friends” told me he shut off his 401k contributions. I kind of looked at him with a strange glare and said, “Are you serious?”

Well he was and I proceeded to talk to him about investing for the future.

For years he has been buying stocks (investing in 401k, same thing) while the market was strong. Now that there are bargains to buy he is not buying. How stupid is that?

I showed him that in 7 days I turned $2800 into $6900 by buying the worst performing stocks I could find. He was kind of shocked.

Buying a cheap stock that was trading for $11 a share 6 months ago and is now at 30 cents a share is the only way to buy. I showed him how to buy at the 52 week low and have discipline. Set your prices low or at the 52 week low and guess what? A large percentage of those stocks will go up.

Do this little by little. Every week buy a small amount. For some that might be $100, while for others it might be $2000. It is simply your interpretation of little. Guess what will happen? After a year of trading you will own stock in 52 different companies that were greatly undervalued. Since you bought cheap stocks, you own more shares meaning your chances for gains are much greater. Do the math and you will see that some people over the next 3 years will be building great wealth while others are sitting around watching their savings and 401K’s dwindle to nothing.

Take control over YOUR OWN money and investments.

Examples of my stock buys this week.

This week I bought

Aurora Oil & Gas Corporation AOG: AMEX

deCODE genetics, Inc. DCGN: NASDAQ

Franklin Bank Corp FBTX: NASDAQ

I think all the above have been hit hard by current market conditions and simple bad press. I do believe all will rebound over the next 2 years and rebound strong. Aurora is the only one that is more of a dice roll. However, with the current energy situation I could resist a cheap pick like that.

Important Note:

This is the personal blog of one investor sharing his stock buying decisions; it is NOT a recommendation for others. Investing in stock should only be done by those who are prepared to lose all their money as it is speculative and risky.

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