What To Do When You Lose Money In The Stock Market? (3 Options) скачать в хорошем качестве

What To Do When You Lose Money In The Stock Market? (3 Options)

In this video, we explain what you can do when your investments are in the negative. Want to start investing? Use these links 👇 Buy international stocks: Interactive Brokers ► https://themillennialfinance.com/ibkr Buy Malaysian stocks: RakutenTrade ► https://themillennialfinance.com/rakuten Passive investing: StashAway MY ► http://themillennialfinance.com/stash​ StashAway SG ► https://themillennialfinance.com/stas... Wahed Invest ► https://wahedinvest.com/get-started-s... (use code EMIBIN1 to get RM10 FREE when you sign up) Over the last year, many of us just started our investing journey. While we’ve had a pretty good stock market so far, we could see some turbulence ahead. Today, we’ll talk about what to do when your investments are losing money. STEP 1: DON'T PANIC We’re all long term investors here, and we expect our money to compound over tens of years. The first thing we should do is to calm ourselves down and not panic Its difficult, and it’ll definitely take some getting used to especially if you have a large portfolio. I’ve done it many times before, selling my positions when its in the red only for it to fly back up after. I noticed that this is probably the most difficult part about investing to overcome, and constant buying high and selling low will be detrimental to our profits. After all, dips, corrections, and bear markets are normal and happens all the time. On average, we should expect a broad stock market decline of 10% every 2 years, and 20% every 4 years. Watch the video to get some perspective on market corrections and dips over the long run. So now that you’re calm and ready to make a decision, it's time to consider the 3 options we have - buy more, sell, or just hold. OPTION #1: BUY THE DIP This is the usual course of action for most scenarios. It's been working for a while now with people shouting buy the dip every time markets fall. If you liked Apple for example at $150, surely you’ll like it more if it drops to $120. Its kinda like stocks being on sale. If you bought major market dips in 2008, 2018, and 2020, you’d be doing much better than for those who decided to sell or just hold. In fact, broad market corrections are one of the best times to buy the dip - whether its for ETF’s or stocks. For this, we need to acknowledge that we can’t time the exact bottom so don’t wait too long - that's a mistake I made in march of last year. Instead, we can spread our buys across multiple checkpoints so we know we can get a good average, kinda like dollar-cost-averaging (DCA). For individual stocks, this especially makes sense if the stock is dropping for no particular reason or for a reason that you feel is unjustified. Watch the video for an example where Amazon's stock price dropped for no specific reason. OPTION #2: SELL Stocks drop for a reason and sometimes, they’ll never get back to the level they were once at, or at least for a long time. We can’t always have the mentality that we’ll buy every dip thinking it’ll go back up. Cheap stocks are cheap for a reason. This doesn’t really apply to ETF’s, as they cover the broader market Unless the S&P 500 drops due to some extreme event impacting the US, its usually unlikely that we sell it during a selloff. So in the example of stocks, sometimes it falls because of news that fundamentally changes your bull thesis. Watch the video for am example of how I decided to sell a stock I was holding last year. In short, buy the dip when it makes sense and sell when it doesn't. OPTION #3: HODL The third option is the most simple one we have, which is just holding the stock. Maybe you don’t have enough money to put in more or you think your position is already too large, and you don’t wanna add to it even though it dips. Another valid reason to do this is that you know the company is facing some troubles now which lead to the stock price drop, but you think they might be able to turn it around in the future. Some investors have rules such as they will only invest 3% of their portfolio in a stock, and not touch it anymore. Watch the video for an example of a stock I'm holding and why. Hey! Thanks for reading the description. We can't fit everything in here, so make sure to watch the whole video to find out more :) ⌚ Timecodes: 00:00 - What To Do When Your Investments Lose Money? (3 Options) 0:34 - The first thing to do when you lose money investing (IMPORTANT) 3:03 - Option #1: How to buy the dip 4:49 - Buying the dip for individual stocks 5:59 - Option #2: When should you sell your stocks? 8:54 - Option #3: How long should you hold stocks? 10:26 - The best stock investing strategy Follow us on Instagram:   / themillennialfinance_   Tell us in the comments if you liked this video and what other kinds of videos you would like to see. Disclaimers: https://themillennialfinance.com/disc... Music: Bensound.com #TheMillennialFinance