Whether you participate in mutual investments, buy ETF’s or have seperate stocks you are looking for obtaining a profit. But when is the perfect moment to sell them? There will never be the best moment, since in history stocks have always been going up; Or is there?
It’s true that if you keep on waiting everything will probably be at a higher price in the future. However taking a profit here and there is not a bad idea. We invest to be able to buy ourself a house, to get a different car, to allow our children to go to study, and other reasons. This means that at some day you will need to take (some) of your money out of your current investments. Once this is done you can also stay on the lookout for purchasing a new investment when they are at a lower price.
Investing is a business where you can look very silly for a long period of time before you are proven right. – Bill Ackman
If you have bought stocks during the pandemic congratsulations. Because in comparison with everyone else you managed to keep your head cool. Everyone has been dumping their stocks during the crisis. If you would have told anyone that you bought shares when everyone was in trouble they would call you crazy. When they would hear you are making profit now they will understand that you understood what was happening. If you haven’t been buying during this pandemic don’t worry.
Take this moment to check how the stock market did during the pandemic. Look at how much the market will boom in the coming months. If you have never bought any stocks only use this as a learning opportunity. Don’t use any money for investments that you aren’t able to do without. Put some stocks on a watchlist and see how they evolve after the pandemic. If you look at it while it is happening you can make predictions without having to use any money. So you will have a practise run before you spend during the next crisis.
Take a look at your assets and see where you can save money to have it prepared for the next stock market crash. Start with a small monthly investment plan and look for the best moment to add in extra money. Next article will explain how you can benefit from a similar investing as this article for growth in other areas of your life.