"Buy when there's blood in the streets, even if the blood is your own." ~ Baron Rothschild
It is very hard for me to put additional funds in the stock market during a market decline. Instead of buying, I become conservative and worry about how much my current investments have fallen. By the time, the market recovers, I've missed my opportunity to buy stocks at a discount.
At this time, I've decided to prepare myself to buy into the next decline and build our core investments. First, I have designed strategy using 4-6 commission free ETFs. Second, I have created a list of dividend paying stocks to buy in addition to the ETFs. Third, I've identified cash funds that can be invested for 3-5 years without causing financial hardship if the investments decline.
I'll learn how much this preparation helps when the next stock market decline occurs.
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This is not financial advice. Please consult a professional advisor.
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1 comment:
I do the same thing, and hesitate for no reason. With Stop/Limit orders, making a trade in a down market is much safer than it used to be... even if it doesn't go through 100% of the time
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