Everyone wants to buy low and sell high, but most people just buy and forget about it.
I call this putting your portfolio on autopilot, because many people think that all there is to managing money successfully is making sure they buy the right stocks and mutual funds. Certainly, buying right is one critical component, but knowing when to sell is nearly as important.
Ask yourself this question: Do you know when you are going to sell every position you own?
If you can’t answer yes to that question, you’re putting your money at risk for some serious pain. If you are managing more than $100,000, you really should be committed to protecting principal first. It’s only when you are attuned to the idea that wealth, to be created, must be preserved, that you really are on your way to coming off of autopilot and controlling the joystick of your own money.
Remember that hope is not an investment strategy. Have a plan in place for both good times and bad.
If you’d like to find out how to take advantage of this five-year bull market, while simultaneously gaining control of your money when the next inevitable downturn occurs, you need to find out about my Successful Investing advisory service.
Hey, we’ve been helping investors beat the market for more than three decades, and we’ll continue doing so for many more decades to come.