How much are you willing to lose before you sell? I understand investing is a long term plan and this all shall pass eventually, but its hard to watch my account lose so much right now and am just curious on what everyone's strategies are in this sort of situation.
John Woodward
2010 Nitro Z8
I wish i would have sold Monday when it first started slipping. Now I'm just going to ride it out. I'm not willing to take those kinds of losses by panic selling.
That question has so many variables in it. But..........
If it's a short term trade, hours, days, months, then I already have a price level in my mind that proves my idea wrong.
If it's a long term investment, then I will take a loss if the reasoning for buying the stock no longer works.
The retirement accounts I won't think about selling regardless of whats happening because we're getting free money from employer contributions. I want the market to go lower, much lower, the lower it goes the more buying power I have. The 403B is weighted heavily with large cap growth like AMZN. Now when we are closer to retirement I will change the holdings to something a little less risky like AAPL..
I do have a early retirement account that I'm building for passive income. For example VZ, I will continue to add to it until the story changes. If the price goes low enough I will have to start asking is that dividend safe. Is their business plan safe or will Starlink take too much business from them? DOW, if they stop paying a dividend, I'm out. And others, it's all about the story and less about the price.
If the story or reasoning for why you bought something hasn't changed, then take advantage of the lower prices. I'm adding money every week or two so I can buy more.
Thanos was the hero
If something has changed for a company or sector and I no longer like it long term I will sell. I sold almost all of my energy positions last year because I simply didn't feel like I could hold them for the long term. If I do something stupid (which I have done more than a few times) I just accept I made a mistake and sell. I did this with Vodafone. I made a mistake and bought it for the high yield and then it cut the dividend. It was a bad buy and I was no longer wanting to hold it. If I am down but like the stock and the sector I will sometimes just buy more. I stick to higher quality companies now in sectors I like with lower payout ratios and good balance sheets over the last few years. When you own some of these type of companies it makes it easier to hold during downtimes even if you have a loss for awhile.
Sold everything I was holding for profit, smaller profit than last week would have been... but a lot better than turning my notifications off because I was holding today
My retirement account, which is managed for me, I review it at the end of each quarter. Obviously this is a long term investment so I pay little to no attention to the short term ups and downs. However, at 5 years from retirement I will lower the risk a little and at 3 years from retirement I will be all in on low risk investments.
Now, my day trading, I will, most times, absorb a 10% hit before I sell. There are other variables that can affect or alter that strategy, but for the most part, I set a downside limit at 10% as soon as I buy.
What we cannot obtain from intelligence, we can learn from experience.
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