Why did you sell all? Why not keep a small percentage that you can still lose?
I read stories here of people buying at $7 and selling at $35. Don't be that person. Buy a bit again and see where it can still go. The market cap says it still has a lot of potential.
Except at this point, that won't ever happen. I certainly wouldn't ever sell. If it starts heading to zero, I would just start buying as much as I could. I know I'm not the only one.
I got lucky, because I had cash from the sale and the world crumbled before I had time to invest in the market. Otherwise I absolutely would have, and I've have absolutely lost a lot.
Now I have cash and wondering if inflation will become a problem for the first time since the 70s.
I’ve thought about this too, and came to a different conclusion. The primary reason is just because the markets haven’t collapsed more than 85% over a months long period before, doesn’t mean it won’t in the future. And, my marginal utility for money gets so high below a certain level, that it’s not worth risking this outcome when the marginal utility of more money is relatively smaller.
This is how I (and perhaps others) console myself for not buying at all. With the capital and risk appetite I had at the time, I would have made a nice five-figure profit before selling thinking 'this is the top, for sure'.
I decided to be mostly cash now rather than stocks. I just can not buy stocks when they are this high as I worry what is the upside. Stock markets fall the most as soon as we enter into a recession and they recover fast so I want to be prepared.
With this much money you obviously don't want to be dropping the whole lot into the market at one point. If this were 2009 it would've been a great decision, but after a 2-year bull run that looks like it's petering out I'd probably opt to keep most of it in cash/bonds/money market until you have a better plan for the money.
Anything on the way down in a steep selloff is a good buy, so you did good. Also WRT the pandemic it was pretty clear that there was going to be panic selling, as soon as a pandemic was announced. What wasn’t clear was where the bottom was and how long the recovery would be. Some waited for a deeper bottom and missed out on the vertical recovery.
I don’t get this argument though, I have shares and I don’t think the apocalypse would make me sell them, what good is all of that cash ?
The only people who should worry would be those who have all their savings in their share market, and I doubt the majority of share holders have all their money invested.
Not sure this checks out. I’d sell because I’d hope to buy once we rescued the bottom though.
There's no risk to not selling - so it's more the question of why not hold? The reason why to hold is because these crypto-assets are fragile and they know if too many people try to liquidate before more people jump onto this global Ponzi scheme then the price will crash. But they know it's a matter of time before people who already made tons of money will start to slowly re-inject money, buying to move the price up again - each new buyer supporting each other - until a flood of the general public (or new big time investors) pump money into the ecosystem.
I didn't sell everything, but I did sell a few things to take some profits and dumped a few losers to help offset those capital gains with some losses on things I really wanted to get out of. I'm going to over 75% cash right now. If the market drops 20% then I'm going to slowly start dollar cash averaging in to see if it trends back up. If it doesn't I'm just going to stay cash heavy.
If I had been smart enough to buy Google, Facebook, or Amazon a few years ago I would be taking some or maybe all profits there. If Apple goes below 100 I will start buying again and possibly selling covered calls on it.
My IRA's have a really long time horizon so although I'm still putting cash in them every month I'm not buying anything. I'm not selling anything in there either because I just buy SPY (S&P ETF) and occasionally some down and out sector ETFs every month.
I sold because I think the risk of further, large declines is greater than the likelihood of a continuing increase.
(In 2008, as that crisis was developing, I also sold everything, and bought back once things returned to a new normal.)
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