Through Thursday this week, 90% of my buy the dip stocks went up, and sometimes by a lot. Many of my long term "loser" stocks in a separate account also went up this week, with a few becoming profitable, which I quickly sold for small profit.
This week was exciting, enjoyable and very low anxiety. However, although I felt brilliant, I know the results were too good to be true. It really is just a great, outstanding, maybe even once in a lifetime bull market. It works until it doesn't, which is why I'm sticking to my plan, and avoiding being greedy.
Here's the plan I'm continuing:
- Build and maintain a "retirement paycheck" through dividends from stocks and interest from fixed income.
- Simplify stock holdings by reducing individual stock holding and increasing broad market fund holdings. Sell some positions for tax loss harvesting.
- Continue to hodl "buy the dip" SAAS stock with a target until midterms.
- Stop buying stocks during a market dip.
- Scale into high interest rate treasuries on bond mutual funds since interest rates may go up.
Most of all avoid being greedy when selling stocks. I kept this in mind as I reduced our stock holdings; I did not try to extract the last cent from selling. Sell, simply and feel good is my new mantra when simplifying.
This is not financial, stock investment, stock selling nor fixed income advice. Please consult a professional advisor.
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