๐—ฌ๐—ผ๐˜‚ ๐—ฑ๐—ผ๐—ป'๐˜ ๐—ต๐—ฎ๐˜ƒ๐—ฒ ๐˜๐—ผ ๐—ฏ๐˜‚๐˜† ๐—ฎ๐˜ ๐˜๐—ต๐—ฒ ๐—ฏ๐—ผ๐˜๐˜๐—ผ๐—บ ๐˜๐—ผ ๐—บ๐—ฎ๐—ธ๐—ฒ ๐—บ๐—ผ๐—ป๐—ฒ๐˜† | Adam Khoo

Adam Khoo
2022-07-15

Now think about it. The average bear market drops 35%, and right now the market's dropped 20%-25% on the S&P. 

Now it's bounced back a bit, but it went all the way down to close to 25%.

Let's say you bought after a 25% decline, and after you bought it went down another 10%. 

Does it really matter?

It doesn't really matter if it went down another 10%, 15%, or 20% because ultimately it's gonna go up 200%-500%. 

So it doesn't matter whether you bought at -20% or -35% if it's going up many hundred percent-fold in the future.

Investors have to get over that

Let's imagine you bought a stock at $50 today, and it's gonna be $200 in the next couple of years. 

Will you be happy? 

But what if I told you that after you bought it at $50, it dropped to $30 first before going to $200. 

Will you STILL be happy?

It's the same thing right, so why do you care that you dropped even more before eventually going up to way above where you bought it right. 

Like I always say, as an investor you never want to invest all at once.

You always want to save a bit every month to put a bit into the markets consistently, so if it drops to $30, you can still add in a bit more to keep averaging your cost down. So eventually when it bounces $200, you'll get an even bigger return!

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • GoodLife99
    2022-07-17
    GoodLife99
    [Like]well said, but only if bullets a available for DCA
    • GoodLife99Replybwjx:ย 
      no more bullets already... [Facepalm]
    • bwjx:ย 
      oh dear. hope you didn't use up all bullets cos good deals will be coming soon. [Happy]
  • iceflower
    2022-07-16
    iceflower
    trading fee, comission fee, platform fee, gst all do matters for a small chipmunks like me.. [Sad] so I still need to buy wisely..
    • letshuat:ย 
      btw Adamkhoo yet to make any transaction on tiger broker ๐Ÿคฃ saying is cheap
  • JC888
    2022-07-18
    JC888
    Human nature to want to buy any item for a gd price no? Applies to property also no? Also theory is for Long Term investmt no With Assumption tt a Gd Blue Chip  identified. Assumptn need to b stated
  • RXU
    2022-07-17
    RXU
    thank u sir
  • limnorth
    2022-07-16
    limnorth
    Itโ€™s greed and fear at play. Greed in the sense that people feel they can time the bottom and gain the most. Fear in the sense that they just follow the hype and didnโ€™t know what they are doing.
  • Ericdao
    2022-07-18
    Ericdao
    U are using possibilities, is this the right way to invest? What if it didn't go up as per u expected? Short term it has definitely took a turn up but I can't say for long term
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