Party Like It’s 2008…

So this weekend I was at a party, and several of us started chatting about the stock market. I didn’t start the conversation, because I don’t talk stocks with friends. Several people moaned about how they had really suffered in the 2008 crash. And one guy said “my account really got hammered, but luckily I didn’t sell or I would have taken an awful loss. The market came back so it all worked out fine.”

I had to bite my tongue pretty hard.

That’s like five years of his life where his portfolio did nothing. Or worse. Some of the companies he owned could have gone out of business during that period of time, leaving him with what experts call an “Actual Loss.” Imagine if he’d had a simple trailing stop loss of 10% or something…sure he would have taken a little hit at the end, but then he’d have all that cash freed up for when the market bounced back, compounding his way to riches…

But you know that, otherwise you wouldn’t be reading blogs like mine.

While I don’t like taking a loss any more than the next person, I do love to shop. And that’s what the stock market is, a place to buy and sell little tiny pieces of companies! Therefore I look forward to selling stocks, so that I can buy something else. “Buy and Hold” is a sucker’s game, and also pretty damn boring.

Think I’ll go sell a couple of profitable stocks today, so I can do a little shopping…

Rev your engines and grab your shopping carts, because it's time to go shopping!
Rev your engines and grab your shopping carts, because it’s time to go shopping!

 

 

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