I have to admit that Jerry Maguire is one of my favorite movies. In fact, I have a copy of that movie in my phone, which I listen to whenever I'm bored in the office. :P I love the short messages that Dicky Fox (fictional character) gives, which I find applicable also to business and investments.
So what's my favorite line in the movie? No, it's not "You complete me". The line which I like the most is "Just roll with the punches. Tomorrow is another day."
Whenever the stock market falls down really hard, just like what happened yesterday (April 15, 2015), I remind myself of that line. Just accept the losses that Mr. Market is giving you right now. On the next day (or next couple of days), it will eventually bounce back and give you new hope. That's why it is very important to select the stocks you trade or invest in wisely. Choose stocks with sound fundamentals, and avoid penny stocks. By having good stocks in your portfolio, you don't need to worry about cutting your losses, and for sure, you'll still be able to sleep well at night despite of the massive market sell-off. When the market goes up again, usually, these stocks are the ones who recover quickly.
Aside from absorbing the impact of the down market to your portfolio, you must also take advantage of that opportunity, if possible. Buying UITF units or MF shares during the period is a good idea. With the decreased prices, you'll be able to buy more units/shares. That means higher profit for you once the prices go up again.
The last thing that I want to say is to go long term on your investments, as much as possible. When you go long term, you don't have to worry about short-term market fluctuations. You'll treat bloodbaths as just an ordinary day. When you sell or redeem your investments in the future, you probably won't remember these "down" days.
With the Dow up by 0.44% as of writing, I'm pretty optimistic that the market can bounce back later. I wish us luck in our trades and investments.
Stocks Notes
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