How far do you let your stocks drop?
- Thread starter The motor guy
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$13,000 in like 8 days is a lot imo It dropped $5000 just today.
Originally Posted by motor_oil_madman
$13,000 in like 8 days is a lot imo It dropped $5000 just today.
In a $25,000 portfolio, it's a lot.
In a decent portfolio, it's nothing.
If you're focused on how many $$ and not on what %, then you're thinking about this the wrong way.
$13,000 in like 8 days is a lot imo It dropped $5000 just today.
In a $25,000 portfolio, it's a lot.
In a decent portfolio, it's nothing.
If you're focused on how many $$ and not on what %, then you're thinking about this the wrong way.
Interesting - I was in a seminar earlier this week that consisted in part of a discussion about stocks. The main point (related to stocks) was stocks are a long term investment and most people should just buy them and leave them be. (actually should buy them in a diversified fund and leave them be)
But it didn't actually lose money until you sell it and if you look at the historical crashes, you'd still be better off now if you had just kept them... some of them you'd have had to wait a good portion of time, but your short term money should not be in stock anyway.
But it didn't actually lose money until you sell it and if you look at the historical crashes, you'd still be better off now if you had just kept them... some of them you'd have had to wait a good portion of time, but your short term money should not be in stock anyway.
Originally Posted by PimTac
A 3% drop is nothing. If this makes you nervous then you need to reconsider your risk tolerance.
This is a knee jerk reaction to rising interest rates. The underlying economy is still in growth mode. The markets are full of nervous nellies.
Exactly.
And the economy will remain strong for the next few years.
A 3% drop is nothing. If this makes you nervous then you need to reconsider your risk tolerance.
This is a knee jerk reaction to rising interest rates. The underlying economy is still in growth mode. The markets are full of nervous nellies.
Exactly.
And the economy will remain strong for the next few years.
Originally Posted by RamFan
Cujet said:
Originally Posted by dblshock
right kinda blows the whole buy and hold dogma into smithereens.
Ask the 401K millionaires how they amassed that much money and they'll tell you they ignored the Jim Cramers on TV.... through good and bad times they kept putting money into 401K with diversified investments. That same advice holds true for IRA and brokerage accounts.
Dollar Cost Average investing helps in the long run, not the viewers watching CNBC or Mad Money.
right kinda blows the whole buy and hold dogma into smithereens.
Ask the 401K millionaires how they amassed that much money and they'll tell you they ignored the Jim Cramers on TV.... through good and bad times they kept putting money into 401K with diversified investments. That same advice holds true for IRA and brokerage accounts.
Dollar Cost Average investing helps in the long run, not the viewers watching CNBC or Mad Money.
Originally Posted by dblshock
right kinda blows the whole buy and hold dogma into smithereens.
Buy and hold only kinda works because all the other strategies don't quite work out. Many can't call the top and those that get out, stay out so that they miss the gains when they do finally get back in. So the long term analysis shows that those that stayed in did better over the long run than those who sell. On average of course. There are always those that claim they can do it, but it turns out that they may get lucky once, but they can't do it on a consistent basis. And there are so many that claim that they can do it but can't deliver so it's the same roll of the dice. Sorta like the advice to buy low sell high. Easy to say, hard to execute.
right kinda blows the whole buy and hold dogma into smithereens.
Buy and hold only kinda works because all the other strategies don't quite work out. Many can't call the top and those that get out, stay out so that they miss the gains when they do finally get back in. So the long term analysis shows that those that stayed in did better over the long run than those who sell. On average of course. There are always those that claim they can do it, but it turns out that they may get lucky once, but they can't do it on a consistent basis. And there are so many that claim that they can do it but can't deliver so it's the same roll of the dice. Sorta like the advice to buy low sell high. Easy to say, hard to execute.
If you are asking about a single stock that is doomed like sears you should have sold it 20 years ago.
I did a smart thing in 2008 just as it all started to look like it was going down and put all my 401k into a safe harbor account. It still dropped but not as much as it could have. I also did a very dumb thing and stopped contributing to my 401k and didn't restart or move the funds back until it had recovered a bunch so I missed out on a huge amount of gains. Wish I hadn't done that.
I did a smart thing in 2008 just as it all started to look like it was going down and put all my 401k into a safe harbor account. It still dropped but not as much as it could have. I also did a very dumb thing and stopped contributing to my 401k and didn't restart or move the funds back until it had recovered a bunch so I missed out on a huge amount of gains. Wish I hadn't done that.
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