Monday, January 4, 2016

2016 Stock Market Opening & Credit Scores

2016 Stock Market Opening

If I could change one thing about stock market visualizations, I would change the red and green colors. When a stock goes up, the stock/value is shown as green. If a stock goes down, the stock/value is red. We associate with green as good and red as bad. If I could program my Robinhood App, I would rewrite the code so that stocks were shown green when the price went down, and red when the price went up.

You might think, when the price goes up on a stock, I make more money, so that is a good thing and it should be visualized as green. When stocks go down in price, like they did today, there is the opportunity to buy stocks and save some dollars. When the market is down, the Yahoo Finance website will show stock traders with gloomy/sad/shocked looks on their faces. I need to develop the mentality of having the opposite reaction. When stock prices go down, it isn't BAD. If prices continually go down for many months, then there is cause for concern.

A lot of my big positive % gains from September/October were from buying stocks that went down in value. Eventually the price went back up, and I sold for a gain.

Credit Score

When the decision came to keep paying my mortgage or take a hit on my credit score, I chose to keep money in my pocket and take the hit on my credit. Money is real and tangible. I can see money in my bank account, and I can feel money in my billfold. A credit score is a number. Up until a couple years ago, I had no idea how to view my credit score. I'm not saying credit scores aren't important, but when the time came to make a decision, I chose to stop paying my mortgage. A house foreclosure is no laughing matter. I am fortunate enough to have already moved on, and there is no wonder where I'm going to sleep tonight. Foreclosures can be serious negative events in people's life, and again, I'm thankful I was able to move on and leave my old job.

Unfortunately, a house foreclosure has negative impacts on the credit score. I don't have a finalized plan to rebuild mine, but as always, I never carry a balance on my credit cards. I treat them like a debit card. I don't spend the money unless I have the full amount of cash to cover the purchases. I'm not going to buy a house again for a long time, (if ever), so the only thing I'll need a credit score in the foreseeable future is getting a different car. If the credit score issue is a road bump for getting a different car, then I hope I can explain the situation from my house/mortgage. I still agree with my decision, and am happy to have the money in my pocket.



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