AssetBuilder Inc. Registered Investment Advisor - Simple Investing. Smart Future.

Dear Scott, Thank you for your financial advice and for giving it to such a wide audience. I always enjoyed learning from your articles. Even so, I made a big mistake: I was greedy and emotional - the biggest money-killer qualities investment; the market isn't the problem. A lack of self-control is the nemesis. I put in about 80% of my money into a regional ETF/Index. I wanted to make a "quick" earning and sell it as soon as possible. Well, that didn't happen. I lost about 13K till now. I bought it a few months ago. I trained myself not to do anything at all - Doing nothing and not reacting is what I need to learn. I've only been investing for a year, and I'm glad I learned this lesson early on. My question is: Should I sell the Index Fund now while the market is low, so I can implement the couch potato portfolio now when the other funds are also similarly low? Or should I do nothing and wait for the Fund to recover? Thank you. A

A,

         Sell and implement one of the Couch Potato Building Block portfolios. That will get you out of trader/timer thinking. Even now your question is burdened with the liabilities of trader/timing thinking. It leads you to crystal ball questions that require making guesses about the future price of a particular asset class.

         Human beings aren't very good at guessing the future, particularly those who tend to believe they can.

         Once you establish a fully diversified portfolio the ONLY issue you'll face will be whether you have built one with a risk/volatility level that you can tolerate.

Scott

 

 

Dear Scott,

 Thank you for your response. I shall remember this for life.

 A

It is nice to hear that you are learned from your mistake, It is always good to do some research before you investing on it.