I am new to investing on an active basis. In the past I have had work related funds that I picked a mutual fund and money just automatically went into that fund. I never watched or cared what was happening to it.
In mid-January of this year 2020 I decided to try hands on investing by dumping my savings account that was not earning any interest into the stock market to at least increase the earnings on it. My ultimate goal was to jack up the amount to a point where I could turn that money into a down payment and closing costs on another investment brick and mortar triplex or duplex. Boy was I shocked when the market decided to slit it’s own throat this past week and the bottom fell out and rolled down the hill into the river and get swept away.
Key thing that I learned in the past 6 weeks is do not panic! If you panic and sell well you have lost that money that was lost. Eventually the market will recover so you either hold everything or better yet dump more money into it and cost average your losses. That was the path I chose until the fourth straight day of the bottom falling out of the already bottom. At this point it was time to just stop drop and roll! Hands off and just sit back and watch. It was like a proverbial train wreck, you just couldn’t look away and it kept getting worse and worse and well WORSE! Come Friday 5 minutes before the bell I had the option to meet an ex-dividend date on a REIT I have been watching at a ten dollar discount from what it was on Monday so I jumped on it. We shall see.