I appreciate all the positive feedback! I really do! I pour my personal info out here in an effort to stir people to action. I fully understand that investing - in anything - comes with a certain amount of gut wrenching. Even buying something as simple as a rental house... we always second guess ourselves. It's a big deal. I get it.
I wasn't really asking for posts about feelings -- it was really a rhetorical question. But I'm glad to hear these reports of success! I like the interaction because that gets me thinking about what "newbs" need to know - or think about. Just like the recent MLP question.
So RE: Investing 102
Here's the takeaway I want you guys to get from the action in the market like this week.
These big "drops" don't always come with big rebounds. Put a couple of the names you hold in your charting - via Google Finance or Yahoo Finance - and take a look at the TEN YEAR chart. Notice the LONG VALLEY beginning after the peak mid to late 2007.... there's about a 3 year "DIP" there. You have to be mentally ready for that kind of long dip. The last couple years you've been QUICKLY rewarded buying on dip (on sale!) events. But there will be a time when you buy the dip - and then the market drips lower - you buy some more - and the market goes lower and so on.
So now stretch your chart out from 10 year to "ALL".... Look at how many "valleys" are in that chart!! Many of them look violent - some are just flat spots - some are longer.... BUT THE LINE WILL BE LOWER ON THE LEFT SIDE AND HIGHER ON THE RIGHT SIDE. I'm yelling that (really just emphasis) in order to fortify your resolve to STAY INVESTED. You have to trust that you will be rewarded for holding. When the market turns around - you'll look brilliant! And you'll be richer than the asswipe that tried to time the market sold low and buys high.
Timing the market will have you OUT of the market when it's on sale - and all those quarterly dividends WON'T be buying shares that have gone on sale (and come with a higher yield!!).... adding to your pile at lower prices. Then the market will turn up and you'll be out -- and then you'll get back in at higher prices and own fewer shares.
Getting rich takes time... resolve... intestinal fortitude. The guys that are laughing all the way to the bank right now are the ones that bought houses when you couldn't give one away. Ditto the INVESTORS in the market. They HELD and bought - they didn't sell and hide... They know TIME and history is on their side.
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