KennySillmann
Since we have seen some red numbers since the start of this year, let me explain why this is a good thing: As an investor, it's never easy to see your portfolio experiencing a drawdown. However, it's important to understand that drawdowns are inevitable and part of the natural ebb and flow of the markets. In fact, experiencing drawdowns is a normal occurrence for anyone investing in the stock market. One of the main reasons for drawdowns is that as investors, we only place buy orders and not sell orders. We purchase stocks with the expectation that their value will increase over time, but there will be times when the stock's value decreases, resulting in a temporary loss. To overcome this, one approach that investors can use is dollar-cost averaging (DCA). This is a strategy that involves investing a fixed amount of money at regular intervals, regardless of the stock's current price. DCA helps investors to average out the cost of their investments over time, reducing the impact of market volatility on their portfolio. It also allows investors to take advantage of market dips, buying more shares at a lower price. Investors should also remember that the stock market is a long-term game. Over the long term, stocks tend to perform well, despite short-term fluctuations. Therefore, it's important to stay committed to your investment strategy, stick to your financial plan, and avoid making emotional decisions based on short-term market movements. In conclusion, experiencing a drawdown in your portfolio is a normal part of investing. By using strategies such as DCA and staying committed to your investment plan, you can weather the storm and come out ahead in the long term. Remember, the key to successful investing is patience, discipline, and a long-term perspective. Kind regards and happy trading/investing, Kenny $NSDQ100 $LUMN (Lumen Technologies Inc) $RRTL.DE (RTL Group) $LGEN.L (Legal & General) $ZIM (ZIM Shipping Services Ltd)
Like CommentShare
1 reply
null
.