That is one of the powerful words Bo Sanchez gave in last Sunday’s Feast in PICC.
It hit me as well. In times like this when the stock market is going through a roller coaster ride or maybe your hopes of a bounce back did not materialize and you already positioned ending up stuck or “ipit” we must think of this mantra or guide.
Yes forces beyond our control affects the stock market but we can do something about it. If we fail we got to take action to mitigate its effect. In trading language we call that “cutting losses” or in other terms “exit price”. But at times we are stubborn. We wait and wait and end up losing around 30% of our capital. This is okay if you have a longer time horizon in regards to your investment.
Generally one should look at one’s stock investment in long-term. Thus one has to take action and strategize on how to average-cost your portfolio investment. Also one has to make sure that buffers are well established in order to avoid a force selling of your investment. Always set aside for your emergency fund and make sure that you meet your day-to-day living expenses before putting in money for investment. It will be painful to withdraw your investment if it already lost 30% of its original value due to an emergency, it is like a double loss.
So in times like this you take action to learn more about investing. We are all students for life and what we know might have already been outdated. Also there will be so many information out there that might mislead you or confuse you so make an action to filter or design a way to only get to the right information so not to waste your time reading and browsing each report or news you get.
You got to do something to make a change: ACTION ATTRACTS ABUNDANCE