How far do you let your stocks drop?

[PimTac]

A 3% drop is nothing. If this makes you nervous then you need to reconsider your risk tolerance.

This is a knee jerk reaction to rising interest rates. The underlying economy is still in growth mode. The markets are full of nervous nellies.

 

[The motor guy]

$13,000 in like 8 days is a lot imo It dropped $5000 just today.

 

[Astro14]

Originally Posted by motor_oil_madman
$13,000 in like 8 days is a lot imo It dropped $5000 just today.


In a $25,000 portfolio, it's a lot.

In a decent portfolio, it's nothing.

If you're focused on how many $$ and not on what %, then you're thinking about this the wrong way.

 

[dblshock]

you know the saying: stocks take the staircase up and the elevator down.

 

[dblshock]

FANG stocks murdered again pre-market AMZN -40 GOOGL -18

 

[DuckRyder]

Interesting - I was in a seminar earlier this week that consisted in part of a discussion about stocks. The main point (related to stocks) was stocks are a long term investment and most people should just buy them and leave them be. (actually should buy them in a diversified fund and leave them be)

But it didn't actually lose money until you sell it and if you look at the historical crashes, you'd still be better off now if you had just kept them... some of them you'd have had to wait a good portion of time, but your short term money should not be in stock anyway.

 

[dblshock]

long termer excuses for taking it on the chin...when you lose money it's gone.

 

[Dave Hess]

Originally Posted by PimTac
A 3% drop is nothing. If this makes you nervous then you need to reconsider your risk tolerance.

This is a knee jerk reaction to rising interest rates. The underlying economy is still in growth mode. The markets are full of nervous nellies.


Exactly.

And the economy will remain strong for the next few years.

 

[Cujet]

Originally Posted by RamFan

I understand everyone's situation is different, but putting max into an IRA for 30 years and ending up with $50k sounds off.


No bull. My IRA took huge losses in 2008 and never recovered. The investment strategy was one offered by Ameriprise and sold to me as a viable, modest risk program. Looking back, they were loaded funds and it was a specific request of mine to not be in such a fund. There is near zero recourse when people mishandle your money. Unscrupulous investment brokers simply want the "fee" and don't care one bit what happens to your money.

I've moved to UBS in the last few years.

 

[Wolf359]

Originally Posted by Cujet
Originally Posted by RamFan

I understand everyone's situation is different, but putting max into an IRA for 30 years and ending up with $50k sounds off.


No bull. My IRA took huge losses in 2008 and never recovered. The investment strategy was one offered by Ameriprise and sold to me as a viable, modest risk program. Looking back, they were loaded funds and it was a specific request of mine to not be in such a fund. There is near zero recourse when people mishandle your money. Unscrupulous investment brokers simply want the "fee" and don't care one bit what happens to your money.

I've moved to UBS in the last few years.




Yeah, I remember back in the 90's I put 2k in my IRA for about 7 years, went up to about 40k from a 14k investment. Then the market tanked, but it only dropped back down to 25k before it recovered.

 

[dblshock]

'00-'08 were a net loss...one economic disaster after another...

 

[Wolf359]

Originally Posted by dblshock
'00-'08 were a net loss...one economic disaster after another...



Yeah, that time period was also kinda known as the missing decade as it took about that long to recover.

 

[dblshock]

mornings after are for the amateurs, selling will resume when the men come back from lunch 1p.m. est.

 

[dblshock]

right kinda blows the whole buy and hold dogma into smithereens.

 

[Dave Hess]

Originally Posted by dblshock
right kinda blows the whole buy and hold dogma into smithereens.


Ask the 401K millionaires how they amassed that much money and they'll tell you they ignored the Jim Cramers on TV.... through good and bad times they kept putting money into 401K with diversified investments. That same advice holds true for IRA and brokerage accounts.

Dollar Cost Average investing helps in the long run, not the viewers watching CNBC or Mad Money.

 

[Wolf359]

Originally Posted by dblshock
right kinda blows the whole buy and hold dogma into smithereens.


Buy and hold only kinda works because all the other strategies don't quite work out. Many can't call the top and those that get out, stay out so that they miss the gains when they do finally get back in. So the long term analysis shows that those that stayed in did better over the long run than those who sell. On average of course. There are always those that claim they can do it, but it turns out that they may get lucky once, but they can't do it on a consistent basis. And there are so many that claim that they can do it but can't deliver so it's the same roll of the dice. Sorta like the advice to buy low sell high. Easy to say, hard to execute.

 

[dblshock]

yah I hear you..but '00-'08 speaks for itself, most bit the dust.

 

[dblshock]

many like me sometimes use the market like a casino I;m like halfway between a investor and trader except I'm most often short...critical thinker.

we have another mess developed today..lot of margin going to be called in now.

 

[jhellwig]

If you are asking about a single stock that is doomed like sears you should have sold it 20 years ago.

I did a smart thing in 2008 just as it all started to look like it was going down and put all my 401k into a safe harbor account. It still dropped but not as much as it could have. I also did a very dumb thing and stopped contributing to my 401k and didn't restart or move the funds back until it had recovered a bunch so I missed out on a huge amount of gains. Wish I hadn't done that.

 

[dblshock]

closed out SQQQ for the moment, started 1/2 position TQQQ ....hope to sell it to the morning crowd early.