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by rufus_foreman
377 days ago
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I don't get tempted to smash the sell button during major dips, I get tempted to smash the buy button. The only time I smashed the sell button was during the stock market bubble in 1999. I wanted to buy during this year's dip but I took a look at my asset allocation and I was still way overweight in US stocks compared to my target so I couldn't justify it. Hopefully people freak out even more next time. Stock market crashes are my happy place. |
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To do that kind of business you have to have mastered yourself or set up systems where the emotional rollercoaster ride doesn't change your choices.
> I wanted to buy during this year's dip...
The Stock market hasn't had a real crash in quite a long time as evidenced by a number of things including the PE values and stock buybacks, lack of general price discoverability towards chaotic whipsaws and the indexes topping all time highs.
People are going to lose the shirts off their backs when it does come, and it will come suddenly without warning. Best to keep that in mind when greed might try to lead you astray. Greed is both a friend and a trader's worst enemy.
Printing money enrolls participants in boom bust cycles. We've had a boom for the last 10+ years nearly straight. The stock market is way overdue for a crash. Its an avalanche prone area with a massive snowpack built up. There's always some chaotic trigger that gets everything moving again.