Asked 4w ago
My investment strategy is for long term (not trading) but still very tempted to pull out now.
If you feel market is high, can take some profits first. eg 20-30%. Keep as cash first and redeploy later on.
it also works as a rebalancing strategy. Holding the investment, and buying more when it dips, only works if you have a stream of money to channel to investment
If you are looking at long term, ignore the short term fluctuations. No point trying to time the market. Statistics shows that timing the market is never a good idea.
Trying to go in and out of the market will incur a huge amount of trading fees. Your investment will be affected negatively due to the bid-ask spread too.
Let's start from the beginning.
Why are you investing?
Is it just for profit gain hit and run?
I think at the end of the day, when you say u invest for the long term, then do the things you need to do for the long term...
Buy and go away!
I've told myself, either i reach my goal or i do nothing once I've decided to invest for the long term.
So in summary, do nothing till you reach your goal.
Because though u see 10k profit today and you think it's a lot. 5 days later if u choose to do nothing, you won't think it's a lot.
I don't see why not. You are adopting a long term strategy by investing in ETFs. I highly advocate a hybrid of both an active and passive management. There is alot of volatility still in the markets so capitalise and re-invest when required. One thing to take note of is your entry price.. you might not get there again. So maybe close off about 30-40% of your portfolio and live to fight another day.
That is like trading. You can do take profit and wait for the drop. However..
I attend a class yesterday, the trainer said... If u sold at a profit.. But the price continue to go up... What is your reaction?
My ans: curse and swear 🤬
Ultimately, plan your entry and exit strategy well.
If you're buying the same thing again when prices drop, how would you know when the prices will drop for the same thing?
If you're cashing out a portion of it to buy something else, then it would make sense because now you're weighing opportunity costs. Or if you're cashing out to diversify, that would make sense as well. Just don't cash out with the mentality of "buy low sell high" AGAIN. That's not investing, that's trading.