facebookPsychologically, what kind of belief(s) would you adopt to hold on to your existing stocks despite market sell off or portfolio drawdown? - Seedly

Anonymous

03 Feb 2022

Stocks

Psychologically, what kind of belief(s) would you adopt to hold on to your existing stocks despite market sell off or portfolio drawdown?

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Firstly, invest what you can afford to lose.

Secondly, decide if you are a trader (short term) or an investor (long term).

Thirdly, decide if you are a beginning investor or a seasoned investor.

Fourth, if beginner, do DCA on ETFs and use robo-advisor as it takes away emotions. Annualised performance of ETFs (Choose a more balance portfolio) over a long period (10 years) is generally more upside than downside. Think long term. Think wealth accumulation not sudden wealth growth. If concentrating your stock pick, buy business with conviction not because of price. Cheap doesn't equal good. Cheap can become cheaper.

Diamond hands and inertia.

Lessons learnt from the past:
Missed out on some returns because of panic.
Not the first time that the portfolio dipped drastically and recovered.

At the end of the day, if I don’t do anything stupid, it isn’t that bad.

A cheap thrill is knowing that a stock can dip 90% in price and the position is still in the green. 😬

Research how the company has been doing since the drawdown.

If the business has been doing better, ...

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