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ag86 asked in Business & FinanceInvesting · 7 years ago

How to stay calm and not sell when you get a loss in the market? How does buffet do it?

I was just wondering because the market took a little dip today and I'm down some money. It's like you panic and want to sell, but doesn't Warren Buffet lose millions some days? Does he ever panic? Any advice I was thinking short term for the trade I made but now since I'm out a pretty penny I need suggestions on if it would be smarter to just wait it out. All suggestions would be helpful. People with experience let me know how you handle these down situations.

5 Answers

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  • M
    Lv 6
    7 years ago
    Favorite Answer

    One thing that helps me is to keep in mind a simple concept - the lower the price of the stock, the higher the rate of return going forward (all else being equal). If the stock price declines, dividend yields are larger, share buybacks are more effective. Focus on buying more shares while the prices are lower rather than selling. There has NEVER been a time in history where the stock market has NOT recovered from a crash. Hang tight, invest for the long term, and when the market falls - buy more stock!

  • 7 years ago

    I don't know what Buffet does, but here is what I do as a buy and hold investor. I hear of a possible stock and do the research. I buy the stock and don't pay much attention to it for a year. Then I watch it for a few months or a few years to get a feel for it's ups and downs. When it looks like it isn't going anywhere, I sell it.

  • 7 years ago

    Dont focus on the short term market news. Do not invest all your money within the stock market. Invest using dollar cost average. Bear markets are good for long term investors. Keep within your mind that the stock market always advance overtime.

    Best of luck... take care

  • 7 years ago

    Frequent trading will cause you to lose money.

    The best way to earn money in the stock market is to buy index funds and hold them long term, longer than 1 year so you reduce the taxes on any gains.

    Do not sell shortly after your purchase. All this does is give brokers high commissions.

    Hold your investments and check them a few times a year.

    Do not sell.

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  • Rob
    Lv 7
    7 years ago

    it is called long term thinking.

    use a library to learn.

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