After today’s market rout the market bottom and timing questions are popping up all over reddit. I am bored of saying this but I will say it once more and then stop.
You cannot time the market. Anyone tells you “buy the dip” or “it’s a good time to buy” just ignore them. They don’t know. Jim Cramer doesn’t know. Trump doesn’t know. No one knows. So please stop asking.
Buy companies you’re comfortable buying and holding for a very long time at a reasonable price. Reasonable price is relative for each sector and also depends on prevailing interest rates. If you’re not comfortable making this judgement and picking stocks this way, buy the index.
Buy over time. Enter when you feel comfortable but not with your entire capital. Wait a few weeks and buy again. Only use money you can forget about for several years. If you ignore the noise and buy companies you’d be happy with as a private owner or accumulate ownership of an index fund, you will accumulate wealth over time. If you try to get rich you will most likely mess up. Avoid leverage if you can.
Last but not least, if you cannot tolerate large losses, and I mean 40-50%, equity investing is not for you. Accept this and buy real estate or other private assets that don’t have daily price quotes.
Good luck.
Submitted March 09, 2020 at 04:46PM by Psychseps https://ift.tt/2v46TtE
