There's really only 1 thing to know about investing right?
Buy low, Sell high.
That's it. Simple right?
Now, everyone can do it.
The thing is... the concept is easy. Doing it, isn't.
I have a friend who wanted to get into investing around a year back in 2021.
Everyone was making money. Crypto, S&P, ARKK, etc...
So my friend asked for advice, etc etc.
Now, in 2021, markets were getting toppish. I didn't really want to tell my friend to start in 2021.
But I also know my friend's character. If don't start now, then probably won't ever start.
So I said to pretty much buy some index tracker, and a REIT ETF, and do a monthly DCA and forget about it, and maybe 10-20 years later, the investment would probably grow.
(I am not making any recommendations to any readers on what to buy. Each one has their own objectives. This is just a specific example based on a situation which I have encountered.)
Fast forward 1 year later, 2022. The markets are down, and my friend is thinking of stopping the monthly contributions.
This story isn't new.
For a lot of new "investors", young "investors", etc...
They get interested in "investing" when the times are good. When everyone is making money. Markets are hot.
I wrote about the shoeshine boy here.
Most new "investors" are probably buying high and hoping to sell higher.
Well the perception of "high" is relative to the time frame anyway...
And when things turn south, a lot of these new "investors" get turned off by the losses and walk away.
A lot of them get burned by Clob shares, dot com, the DBS mini bonds, crypto, etc...
And my friend, who didn't get involved in any crypto, also suffered losses enough to reconsider the whole idea of DCA.
It really isn't easy to keep DCA, when you're losing money every month. Even some of the more experienced investors lose faith/hope at times. Don't say a newbie.
The thing is, assuming the asset is a good and stable asset in the long run, DCA works. The investor would get a somewhat average entry price over the long run, and if the investor sells maybe within 10% of the peak of the next cycle, the investor would do pretty well. OR just DCA into retirement, depending on objectives.
DCA works only when the investor actually does the DCA.
I'm not saying DCA is great. DCA is a tool. It depends on objectives and how it's used.
Today's main point is Buy Low Sell High.
The idea is very simple.
When do you think is a good time to buy investments?
When times are good? Or when times are bad?
You're welcome.
The usual disclaimers.
ERSG is not making any recommendations for investing or financial planning for readers.
Don't just take recommendations from jobless bloggers online.
Do your own research.
Everyone has their own objectives, go find a certified financial planner or something.
<<PREVIOUS POST // NEXT POST>>
Did you like this post? If so, could you "belanjah" me 1/4 cup of my morning coffee pls.
You may also consider subscribing to receive the articles in your email, link in the column on the right.
Buy low, Sell high.
That's it. Simple right?
Now, everyone can do it.
The thing is... the concept is easy. Doing it, isn't.
I have a friend who wanted to get into investing around a year back in 2021.
Everyone was making money. Crypto, S&P, ARKK, etc...
So my friend asked for advice, etc etc.
Now, in 2021, markets were getting toppish. I didn't really want to tell my friend to start in 2021.
But I also know my friend's character. If don't start now, then probably won't ever start.
So I said to pretty much buy some index tracker, and a REIT ETF, and do a monthly DCA and forget about it, and maybe 10-20 years later, the investment would probably grow.
(I am not making any recommendations to any readers on what to buy. Each one has their own objectives. This is just a specific example based on a situation which I have encountered.)
Fast forward 1 year later, 2022. The markets are down, and my friend is thinking of stopping the monthly contributions.
This story isn't new.
For a lot of new "investors", young "investors", etc...
They get interested in "investing" when the times are good. When everyone is making money. Markets are hot.
I wrote about the shoeshine boy here.
Most new "investors" are probably buying high and hoping to sell higher.
Well the perception of "high" is relative to the time frame anyway...
And when things turn south, a lot of these new "investors" get turned off by the losses and walk away.
A lot of them get burned by Clob shares, dot com, the DBS mini bonds, crypto, etc...
And my friend, who didn't get involved in any crypto, also suffered losses enough to reconsider the whole idea of DCA.
It really isn't easy to keep DCA, when you're losing money every month. Even some of the more experienced investors lose faith/hope at times. Don't say a newbie.
The thing is, assuming the asset is a good and stable asset in the long run, DCA works. The investor would get a somewhat average entry price over the long run, and if the investor sells maybe within 10% of the peak of the next cycle, the investor would do pretty well. OR just DCA into retirement, depending on objectives.
DCA works only when the investor actually does the DCA.
I'm not saying DCA is great. DCA is a tool. It depends on objectives and how it's used.
Today's main point is Buy Low Sell High.
The idea is very simple.
When do you think is a good time to buy investments?
When times are good? Or when times are bad?
You're welcome.
The usual disclaimers.
ERSG is not making any recommendations for investing or financial planning for readers.
Don't just take recommendations from jobless bloggers online.
Do your own research.
Everyone has their own objectives, go find a certified financial planner or something.
<<PREVIOUS POST // NEXT POST>>
Did you like this post? If so, could you "belanjah" me 1/4 cup of my morning coffee pls.
You may also consider subscribing to receive the articles in your email, link in the column on the right.
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