The last month has been absolutely blissful for most stock holders.
I read somewhere today that the stock market is off to its best yearly start since 1991! If you own stocks like I do, you are feeling pretty damn good at the moment.
So why the doom and gloom post?
First of all, this is neither doom nor gloom…
My job to all the new investors out there is to make sure you don’t start feeling too low during a sell-off – or too high during a bull market.
You need to know, if you don’t already, that drawdowns are going to happen.
A drawdown is when the stock market falls by 5, 10, 20% or more.
Even bull markets have draw downs.
So I want you to always remember that sell-offs are going to happen…and they are going to be ugly!
The kinda ugly that takes Nvidia (NASDAQ: NVDA) from $298 to $124, or Roku (NASDAQ: ROKU) from $76 to $24.
I mean gut-wrenching ugly, that can make you curse the day you ever purchased a stock in the first place.
Buying is easy, once you get the hang of it.
But holding can be very difficult during sell-offs.
As long as you remember that it’s all part of the process, you will be fine when the next sell-off comes.
And trust me…it will.
Click the image of the book at left to be taken to its Amazon page. (Disclosure: As a participant in the Amazon Services LLC Associates Program, I earn a small commission on each sale generated through these links.)