How are y'all handling this stock route (10/10/18)

With bellwether stock, Berkshire Hathaway, down about 4%, just taking a quick poll of how yā€™all handling it! Stay frosty!

  • Yeehaw, Iā€™m buying the dips!
  • Fasten the seatbelt, Iā€™m in it for long run!
  • Bricking it! Iā€™m selling!

0 voters

3 Likes

Iā€™m hopeful that some really good buying opportunities present themselves in the next couple of monthsā€¦

2 Likes

I thought I was buying the dips but turns out the dip keeps on dipping :grin:

7 Likes

Iā€™ve got 3 ETFā€™s tracking the World (yeah baby) so for me this is all part of the beauty of pound-cost-averaging. 10 years from now Rodney ā€¦

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Iā€™m slightly concerned about the timing of freetradeā€™s launch, as it feels like we are due a crash after a long bull run with the global economy in a fragile state, which is unfortunate if it happens just after a lot of people try investing for the first time. I do feel freetrade donā€™t give you the tools yet to focus on long term performance and forget about daily/weekly/monthly variance. So I hope this doesnā€™t cause a lot of people to give up on investing.

Investments go up and down all the time, often in dramatic ways (up to 30% swings in a month are not uncommon even in solid stocks). The worst possible reaction to investments going down is to sell. You can in theory stop more losses by selling quickly, but this is not a good strategy when driven by emotion and is not IMO a good strategy for most investors. The thing I tell myself when solid investments go down is that they will inevitably rise again (often in a matter of months, but sometimes years).

If anyone is worried about a crash a good option is to keep putting some money aside into cash at the moment. This gives you a balanced portfolio and gives you a cash reserve so that you have the option to buy. Rothschildā€™s infamous advice was:

Buy when thereā€™s blood in the streets, even if the blood is your own.

There are two interesting things about this statement for me - it disregards emotion to a degree most people find difficult, and the focus is on when to buy, not when to sell.

6 Likes

It does feel like we are due a crash, although people have been saying that for 4 years now. Personally Iā€™m heavier cash than I would normally be. Hopefully a good buying opportunity opens soon :thinking:

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Iā€™m not convinced we are due a crash, I think we will be due a crash when people stop saying we are due a crashā€¦ :grin:

4 Likes

Ouch, market is hurting today

4 Likes

Im sure things are better today. Iā€™ll just open the app

image

3 Likes

Well, this is a baptism of fire for us newbies! Or is it a reality check? As Fergy used to say, ā€œItā€™s squeaky bum timeā€. Iā€™ve invested peanuts compared to some, how they keep calm during a free fall goodness knows.

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Iā€™m keeping in mind all those graphs showing how over x amount of time itā€™s always worked out fine. No intention of selling, itā€™ll be fine in the end

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First 2 reads of the dayā€¦ :newspaper:

This should be seen as an opportunity to look for companies that have withstood the test of times.

  • Cigarettes and Alcohols
  • Healthcare
  • Food and Beverage/Consumer Staples
  • Utilities (Electricity and Water)
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Markets go up, markets go down. The beauty of Freetrade is you can stick a tenner in and get full exposure for your cash.

*** always helpful invest only what you can afford to lock away for a long time.

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Having held (hodl-ed :stuck_out_tongue: ) through a 70% fall in bitcoin Iā€™m pretty immune from these tiny stock-market corrections. You need to have a strategy and stick to it, for me Iā€™m doing this to hopefully retire, or at least not need to work, at some time in my 50s, So Iā€™ve got 15-25 years left to go. It seems likely there will be at least one severe crash in that time, but I just think of it as an opportunity to buy at a discount.

If you accept that time in the market beats timing the market then it shouldnā€™t bother you either. Thereā€™s a good article here on the subject with a fun game embedded in it:

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Absolutely, but to add to this itā€™s beneficial to seek to understand what makes them move.

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In no particular order: Panic, over-leveraged positions and herd-mentality, usually.

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For me I have invested in some dubious companies in my time, hoping to see big gains. When the price swings itā€™s scary as hell and I find myself always checking price and panic selling.

But when I invest in markets, e.g. I am currently invested in ftse and global (mostly USA), and the price swings I feel relaxed and happy to put more in, why? because I feel my money is in decent stocks and so the drops are opportunities to top up.

Also I make sure I have some cash savings to weather out the storm.

2 Likes

Thatā€™s a good strategy if I may say so. Iā€™m also invested in global markets e.g. MSCI World :earth_africa: and am very comfortable doing so. I just think research provides the context for gains and losses which is invaluable to hold your nerve. Iā€™ve seen on other forums how some new investors are perplexed as to why their assets are down and it only takes a few clicks in the news to understand fundamentally why.

1 Like