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I think this is probably the most useful wisdom for the average person: > do not invest money you need within 5-10 years and do not make rash decisions; it is
by spicyusername 4y ago
I think this is probably the most useful wisdom for the average person:
> do not invest money you need within 5-10 years and do not make rash decisions; it is better to ride this train down and then hopefully back up than jump randomly.
Gaming the market successfully requires a ton of skill and knowledge, and even then you are not guaranteed success.
Most people are better off focusing on asset-class diversification (i.e. spreading money across many different kinds of asset classes - i.e. physical assets, securities, commodities, cash, etc) than playing just the stock market.
And even when playing the stock market, most people are better off focusing on "time-in-the-market" vs "timing the market".
- thechao 4y agoRight; so my plan of having 60% of my wealth tied up in unvested stocks in a single company is really coming to fruition!
- FollowingTheDao 4y agoOh man, so sorry.
- quickthrower2 4y agoNot really, if they go to zero, then he/she will be in the same situation as most (99.9%) of employees who get no stock.
- thechao 4y agoWe call it the lottery — the last ~5 years we "won"; this year? Maybe not so much.
- quickthrower2 4y ago“We” meaning a subset of “not me”
- snikeris 4y agoThere are ways to mitigate this risk. Talk to a professional.
- robotresearcher 4y agoUnvested stocks are not your wealth. Try not to think of them that way. You own them the same way you own next year's paychecks, i.e. not at all.
- 314 4y agoAs long as you heed standard advice (treat stock as nice to have but value it at zero during wage negotiations) then the impact on your net worth should be minimal :)