Weekly Newsletter   Challenge account   Weekly Newsletter   


Remember your objective, your goal, your plan, and hold tight

As expected markets were even worse on Monday than on Friday. It was scary, but there is no need to panic. Ignore all bears who are coming out of all directions screaming that this is it, this is the end, and this is the beginning of an even bigger crash! It is not.

I can make a bet with you that 6 months from now nobody will remember this crash anymore.

A bear market looks different than this. If you want to see a bear market, take the current chart from 2009 up to today and turn it upside down.

SPX

That is the bear market! What we have just experienced is not a bear market. It is just a panic overreaction and robots trading bad news providing huge selloffs without any fundamental and technical reasons.

We saw a bad news coming from China and algos (robots) started selling sparking more selling from institutions and retail investors freaking out full of fear and panic.

But, you should not panic. Ride this down, buy more shares and sit tight. Unless you see a chart like the one above, you do not have to worry. Soon you will ride this back up.

Just remember your objective and your plan. Remember your time horizon. Are you investing for a few days, months or for the next 20 years?

If you are in the market for the next 20 years, this sell off is just a blip and ignore it. But moreover, buy more shares!

SPX

I know, it is difficult to be buying when everyone around you is scared, selling, screaming, and predicting more doom. But remember your time horizon.

Do you remember 2008 year? The markets erased 50% of its value. It is said that 401k plans lost 60% those days!

And year later the markets were already creating new highs.

We are down only 14.5% from all-time highs. I bet you that in the next 6 months all this frenzy will be forgotten.

So, sit tight, buy more shares and ride this panic.

And if you are a trader? If you are a good trader, you were probably out last week.

Don’t panic, be happy!
 





Leave a Reply

Your email address will not be published. Required fields are marked *