Just a Quite Note About the Stock Market Right Now

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If you are a long term investor, do not sell right now even though the market (DOW) is down 180 points (at this moment).  You have a long time horizon, you keep buying because you are in it for the long term.  You buy, and buy, and buy, and buy no matter what the market does because you want to take your emotions out of it.  You have a day job and don’t have time to figure out whether it is going to go up or down in the short term.

I remember when I first started, I would let my emotions take over.  I would sell stocks whenever it goes down because I would feel sick when it happens.  I feel like my money is getting taken away from me everytime some stock goes down.  On the other hand, I would buy stocks went the stocks were on fire and it seemed like it will never go down.  What ended up happening was that I would sell it when it’s low, and buy when prices was high.  It took me a while to learn that this is not the right way to invest (duh), especially for the part of my portfolio that is in it for the long term.

You might not be happy since stock prices (and hence, ETFs, funds) will go down further from here.  In the very long run however, you will come out ahead.

Good luck, hopefully this will help you reduce the temptation to let your emotions take over like I have before.

Tagged as: Investing

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