View Single Post
  #3 (permalink)  
Old 04-29-2005, 08:55 AM
jmjj215's Avatar
jmjj215 jmjj215 is offline
$ Saving College Senior
 
Join Date: Sep 2004
Location: In My Office
Posts: 1,657
Points: 22288.20
Donate
Default Re: Are you buying, selling, or holding?

Along w/ Terry's advice, consider the fact that you keep purchasing while the market is going down. That's not a bad thing when you're in it for the long haul b/c you expect the market to rise in the next 35 years. So while everyone would like to buy low and sell high, you have to remember that for every person that buys low, someone is selling low, and the opposite of course. The stock market is zero sum in that regard. So keep on investing in (well researched) mutual funds or an index as Terry suggested. You'll be getting your shares cheaper, which gives you a potentially higher upside.

Of course, there are so many other factors. But the gist of it is that if you invest regularly (every month auto withdrawal) for 35 years, this dollar-cost averaging (buying high at times, buying low at times) turns out to be a pretty powerful way of investing your money. And you can sleep at night b/c you aren't worrying about timing the market.

Wow - sorry this is so long!
Reply With Quote