RE: No divi12 Jan 2023 10:26
Just read post by MARYBr190 at 18.03 Wed. I am 71 years old and been in the stock market since the 1980's. Despite setbacks like the 30% 1987 crash, which looks like it never happened on the ftse historical graph, other collapses, mistakes like putting too much in falling stocks "that surely won't go bust", like Polly Peck and others, not being diversified and not keeping cash reserves, I never gave up. I learned the hard way, from my mistakes unfortunately. Reading the post by MaryBr190 was like a mirror image of the strategy I have evolved into and use. We get it wrong sometimes, of course, and the market throws up unexpected surprises. Take this year for example. I am in awe at the strength of the new year rally and because of now being diversified the fall in Direct Line shares has been more than made up by rises in other stocks. I sold a few Direct Line which were in profit after recent rises, on 6 Jan, keeping the rest for longer term. Those I kept suffered of course this week. I bought more Direct Line yesterday. Trading in addition to longer term holdings in a good stock helps mitigate falling prices. Averaging down when good stocks are falling is not a bad strategy so long as you are prepared to look long term, so long as the increased holding is still within a diversified portfolio and where the increased holding is not a huge percentage of your portfolio. Always have cash available to enter the market if prices fall and this cash should be in addition to cash you may need for unexpected life events apart from the stock market. Try not to let emotion get the better of you when making decisions (not always easy). I find the stock market interesting and absorbing and never regretted it despite huge swings up and down. Time in the market has proved a good strategy I have learned rather than trying to time the market. They say to become old and wise you first have to be young and stupid. I do not agree young means one is stupid. I just know in hindsight in relation to the stock market I was stupid in the beginning. 71 years old now and yes, wiser and hope my input helps some. I often get a fresh perspective on a matter, despite my experience, after reading someone's comment on this site. Internet, blogs etc were not around when I started my first investment, wish they were. Best wishes to all in 2023.