Let's be real, it's a challenging season for investors but could it also be a good opportunity?
- limfangjing
- May 10, 2022
- 2 min read
It's common for new investors to experience panic when they see their portfolio's market value dip after a quick rally. While, it's also true to feel unsettled at the same time to only notice that as you add more shares, the price continues to plummet.
But it is natural for new investors to experience concern and doubt.
The natural instinct would be to sell and exit the market in order to alleviate the 'pain,' with the hope of returning later when markets begin to rise again.
This 'uncertainty' and 'panic' are completely psychological, as experienced investors understand, market pricing is not necessarily indicative of the genuine value of the underlying business asset.
Only a loss occurs if you are compelled to sell at a ridiculously cheap price. You haven't lost anything if you know what your stocks are actually worth (Core Intrinsic Value) and hold to them dearly.
Now, we are given 2 option which is to Ignore or Take Control of the situation by Dollar Cost Averaging Strategy fundamentally good business to our portfolio rather than timing the market.
I've also attached a youtube video below from Yahoo Finance, which also shares the same sentiments on good buying opportunity for certain stocks, and knowing this will payoff in the future.
But In hindsight, no one can predict how when or how fast the market will recover.
With that said and to me at least, the longer the market takes to rebound, the more time I have to build a bigger sizeable position at discounted prices.
Wealth is often created by Investors who exercise Patience and seeks advantage of market mispricing in the short term, because a few years from now, many of us would look back and not believe how low and mispriced some good stock had become and wished we added more.
"Legendary investor Peter Lynch always emphasized the importance of being patient: 'Frequently, years of patience are rewarded in a single year'." Francois Rochon
#JustinInCase: The above information is provided for general information only and does not constitute financial advice. While we have taken care to check the source of the information, we cannot guarantee that the information is accurate, complete or will suit your individual financial needs. Please refer to the original source for more details.
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