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Yes, but that's $3,120 on a $1.3M portfolio, and $31,200 on a $13M portfolio. And this was a mild day. There were days in February with 2.4% losses (and more). So that's $312,000 on a $13M portfolio.
It should be an investment rite-of-passage, when one experiences one's first 6-figure daily loss... on a portfolio almost entirely in index-funds... by no means all of which, is in equities.
But let's go back to that $130K portfolio. Has its owner earned $312 today, at his regular day-job?
many here have not yet hit the level of investment where even small percentages in dollar terms can shake even the most seasoned investors .
it is like a 7% drop represents little in dollars to those without full fuel tanks yet . that may be a few months in 401k contributions .
but as time goes on in dollars those drops can be staggering to see .
that 7% drop is 9 years of maxing out my 401k at catch up . that is a freakin lot of dollars to watch evaporate even if just temporary .
i am only 40-50% equities today and i have already seen more than a 40k drop in one afternoon .
so i know what you mean by that rite of passage lol
I have about 130k of my own money to invest, but anytime I put it in I worry so much and check the stocks at least every hour everyday! The problem is I'm a very tight person who likes to take risks if that makes sense. I just can't bring myself to invest and forget. Then if he market or a stock I was thinking of buying goes up a lot, I drive myself crazy over it. I stopped investing for a year because of this. Is anyone else like this and how do you cope?
I'm baffled..according to you in past threads you had it all figured out and always beat the market..what are you worried about? Or was all that perfectly timed shorting just a lot of talk?
I'm baffled..according to you in past threads you had it all figured out and always beat the market..what are you worried about? Or was all that perfectly timed shorting just a lot of talk?
So what's your point? I was obsessively checking my stocks when I was making those gains. I have beat the market so far in the past 6 months since I started reinvesting. What does he have to do with losing money on future trades? That just means I now have more money i can lose and I was still scared when I was making all those gains and still scared now.
So what's your point? I was obsessively checking my stocks when I was making those gains. I have beat the market so far in the past 6 months since I started reinvesting. What does he have to do with losing money on future trades? That just means I now have more money i can lose and I was still scared when I was making all those gains and still scared now.
My point is..you want your cake and eat it too. You want to put big time risky bets on the market for the big payoff without obsessing about it. Well it doesn't work that way. Big gambles provide big risk and ...well... people worry when there is big risk involved. You can easily not obsess by doing what most people do and take a diversified portfolio that pays off in a smaller range with less risk. Up to you.
A manager is the stupidest idea I've ever heard. Pay someone an average of 25% of my gains. No thanks! I'd prefer to buy and hold and index fund.
Actually its NOT. As mathjack said most of the time small investors that obsess over the market make very stupid mistakes that cost them.
Now not sure where you got the 25% amount from?
Actually its NOT. As mathjack said most of the time small investors that obsess over the market make very stupid mistakes that cost them.
Now not sure where you got the 25% amount from?
Average market gains are 8% a year. If you give someone 2% of your portfolio that amounts to 25% of your gains.
And obsessing over the market would happen no matter if someone else is investing it for you or you are investing it yourself. Why would someone else investing my money have any effect in my worry. It would make me worry more! If I could give it to someone else to buy and hold in an index, I could just as easily do it myself. I'm just CHOOSE to not buy and hold right now and accept the worry.
The investors who would give their money to a manager are not the trading type. They are the buy and hold type anyways, so your example is flawed. The buy and hold types that hire money managers just are too stupid or not educated enough to know they could just buy an index fund on etrade themselves for $10.
And obsessing over the market would happen no matter if someone else is investing it for you or you are investing it yourself.
You will either figure out how to handle your anxiety and obsession or you won't. If you don't, and you continue to invest, you'll feel deeply every bump along a long journey. If that's pleasurable to you, go forth.
Some people on this forum appear to enjoy angst, gnashing of teeth and worry of investing, even in broad-based index funds. They claim they don't get pleasure from that worry, but they obviously do at least on some level. Maybe you'll find some kindred spirits and make some new friends among those folks.
Average market gains are 8% a year. If you give someone 2% of your portfolio that amounts to 25% of your gains.
And obsessing over the market would happen no matter if someone else is investing it for you or you are investing it yourself. Why would someone else investing my money have any effect in my worry. It would make me worry more! If I could give it to someone else to buy and hold in an index, I could just as easily do it myself. I'm just CHOOSE to not buy and hold right now and accept the worry.
The investors who would give their money to a manager are not the trading type. They are the buy and hold type anyways, so your example is flawed. The buy and hold types that hire money managers just are too stupid or not educated enough to know they could just buy an index fund on etrade themselves for $10.
I actually agree on paying someone to do what any idiot can do. S&P fund...40-60 percent
(depending on your risk tolerance) ...overseas 20 percent...bonds rest. done.
Average market gains are 8% a year. If you give someone 2% of your portfolio that amounts to 25% of your gains.
And obsessing over the market would happen no matter if someone else is investing it for you or you are investing it yourself. Why would someone else investing my money have any effect in my worry. It would make me worry more! If I could give it to someone else to buy and hold in an index, I could just as easily do it myself. I'm just CHOOSE to not buy and hold right now and accept the worry.
The investors who would give their money to a manager are not the trading type. They are the buy and hold type anyways, so your example is flawed. The buy and hold types that hire money managers just are too stupid or not educated enough to know they could just buy an index fund on etrade themselves for $10.
you can get good mgmt for 1% or less today and market averages have been 9-11% over typical accumulation periods spanning decades . .
if i wanted my money managed i would go to the company founded by the author of a random walk down wall street , burton malkiel . they charge a fraction of a percent and use index funds . it is called rebalance ira . they have a great mgmt team with the likes of charlie ellis too .
I have about 130k of my own money to invest, but anytime I put it in I worry so much and check the stocks at least every hour everyday! The problem is I'm a very tight person who likes to take risks if that makes sense. I just can't bring myself to invest and forget. Then if he market or a stock I was thinking of buying goes up a lot, I drive myself crazy over it. I stopped investing for a year because of this. Is anyone else like this and how do you cope?
You cope by buying and holding only low cost stock index funds which have never lost money after 30 years but have increased by 10X to 50X in any 30-year period since 1926.
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