Quote:
Originally Posted by GregWeld
If I think the market is headed south —— I begin to stash cash vs continue to buy — and I WAIT for the market to come down and then I begin to BUY —- nibbling wait — nibble again....
Selling out trying to figure the market is going south —- that’s called “MARKET TIMING” — it never works well.
Here’s what happens to your mental state — you were thinking about selling because you were nervous — you don’t because you can’t make up your mind — then “whatever it is” you were waiting for does finally happen in some form - AND THEN YOU SELL....... losing money and licking your wounds.
Investing is like getting married — you should be in thru thick and thin - in sickness and in health....
When the market sells off — like a 2008/09 event — and stays down — it gives you an opportunity to average your costs down by buying MORE shares for less cost.... the longer that opportunity lasts — the more time you have to put money to work at lower costs.... by averaging down like this — the market has to come back “less” for you to break even - or begin to show a gain. It’s like — you always wanted a 56 Corvette but they were out of reach — and all of a sudden the market collapses the price..... by half. You buy one that was 100% better condition than you’d dreamed of and drive it and love it.... and you hold it and polish it for 7 years.... and the market all of sudden snaps back and your lovely 56 doubles in value back to it’s pre collapse value. You’re looking pretty smug now.
The reason I advocate DIVIDEND PAYING STOCKS — they keep paying you whether the market is up or down or sideways.
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Thanks for the "chill pill" reality check haha
I appreciate it
I think I just need to pay less attention to the talking heads