Most of us are more personal finance blog readers than stock traders so we really do not earn a living buying and selling stocks. However, it is understandable that many of us are a little upset when we look at our stock market portfolio because of the recent decline of our stock prices. For example, my stock portfolio is basically down $10,000 from an all time high one month ago. This roughly means that I worked for nothing for the last couple months since my after tax income is much less than $10,000.
I’m not particular worried though, because the stock market has been good for me. For me, stocks are a long term growth story as opposed to a short term one. Sure, the stock market has been declining pretty sharply for the last month. However, if we take a 10 year average of stock market prices, the long term up trend is very apparent.
I’m no expert in stocks. Like most of us, I just try to invest in the stock market because I want to have a good life down the road. I understand that the stock market is not going to make me rich overnight, but if I keep investing through good and bad times, I will be rewarded.
Therefore, I will keep buying into the decline as I know prices will increase in the long term. I also focus my energy on other aspects of my life such as my blog and my job, so I’m not looking at the stock prices 24/7. I understand the risk and I made my decision to trust the market. How do you cope with this decline?
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{ 12 comments… read them below or add one }
yeah!
another Bull!
my philosophy:
make sure you’re paying a good price for your stocks. Doesn’t matter whether you pay the cheapest price. You won’t be able to time the market.
But if you’re in this for the LONG term, then it won’t matter.
I’m personally buying more into banks, given that a lot of them were over punished (in my opinion)
J2R: Long term investors should look for value. Good for you that you are buying stocks when they are declining because it’s hard for most of us to do.
I try to buy every time the market crashes. But sometimes, because of paucity of funds i have to let it go.
Meanwhile, keep reading, keeping myself updated on the market and researching on companies that i plan to invest.
Philip: Good for you too! Buying is good, and we should do this regularly.
Research is good because it helps you gain confidence in what you own, making you less prone to panicking.
Ya know Dollar Cost Averaging is really more of a motivation tool than an actual investment strategy. It’s really the only way, I’m able to continue buying when every impulse I have is telling me to sell.
Eric: I think whether you buy on the way up or buy on the way down when it comes to investment strategy is more of a personal preference than anything else. If you are referring to trading, it’s more important to have a game plan. If you are referring to investing, then you just buy when you have money to put in the market, whether it’s going up or going down.
You are right though that if you are buying, you lose some of that temptation to sell.
I liquidated 10% of my portfolio right before the crash and bought back in on thurdsay – good buying opportunity.
Adventures: Market Timer!!!
Actually, your timing is amazing. I think everyone wish they were that “right” 
Market timers always end up buying high and selling low- it’s a fact.
Michael: I hope everyone will just hold tight and keep their cool when the market goes down!!
I have been reading here for a while now and thought it would only be fair to register and contribute instead of being a silent reader. So – I am looking forward to be a full part of the community!
Take care!
ProGasCasMash
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