Over the last 2 weeks, I’ve resisted selling off my mutual funds and ETFs (I don’t hold individual stocks) after watching all the value gained in 2007 plummet and even go negative. Here’s one mantra that I’m constantly reinforcing into my head:
Buy Low, Sell High
One problem with us investors is that we get in a panic. We honestly won’t know how low prices will go or when they’ll start climbing again, but I want to remind you that in all likelihood, prices will go back up again. Of course major catastrophes could affect the number of months or years it would take to recoup your losses, but for me, I’m young (29) and can take the heat. I have no plans on pulling outÂ our investments until we retire, so I’m only marginally worried about a total loss of my invested dollars.
That’s also why I only invest in funds, not individual stocks. There’s far less likelihood that an entire fund will go bankrupt unless the manager did some very naughty things (how often do funds go “out of business”? Help?) compared to a single stock.
So when the market was taking a nosedive on Wednesday, I put in order for 75 shares of PBW. Unfortunately, it pulled back up before it hit my price point, so I didn’t get it for $19 per share. The order is good for 60 days, and it takes a lot of control to not bump up the offer price just to “buy it now”. I’m forcing myself to wait and see.
Feeling Clever? Join our newsletter!
Subscribe to get the latest from "Clever Dude."