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My advice: - Never sell. Ever. (Until retirement). [1] The natural extension of this is... always buy. Buy now. Buy. - Keep a pool of cash on the side (w
by rubicon33 6y ago
My advice:
- Never sell. Ever. (Until retirement). [1] The natural extension of this is... always buy. Buy now. Buy.
- Keep a pool of cash on the side (whatever you can afford) to be ready to capitalize on any "fire sale" of stocks. This should be about 10% of your portfolio as a very liquid non-volatile asset (cash).
[1] Obviously life hits you hard sometimes and you HAVE to sell to cover unexpected bills. I am obviously not suggesting in those situations that you hold your stock to the detriment of your healthy, of a family members health, etc.
- throwaway2245 6y agoI think this is fine advice for anyone who has money that they don't and won't really need. Positive expected value is positive expected value. This works great, as long as you have plenty of bankroll and can ride out any losses. As you say, this advice doesn't apply to people who might need the money.
- stouset 6y agoIf you might need the money, how is donating it to Wall Street through day trading on -EV plays somehow better? If you might need the money, it needs to be somewhere safe like a savings account or a CD. Once you have an emergency fund, you can start saving in higer-risk/higher-reward +EV investments like index funds.