If you look at how the market developed over the last three months you will see an overall decrease of course but if you take a closer look you will see that some companies dropped harder than others. The reasons can be diverse but actually it doesn’t really matter what the specific reasons for each company or even certain sectors might be.
What’s important to understand here (and that’s my lesson for today) is that YOU CAN’T PREDICT the future. You can not know what will happen tomorrow that might cause certain company shares to lose in value.
And that’s actually completely irrelevant. As average investors we don’t try to predict the future and speculate that certain events might happen that could cause certain price moves. If you want to do that, do it with a small proportion of your whole portfolio, just for fun.
In my case I don’t do that at all. I prefer to follow a proven strategy that has made me consistent returns IN THE LONG RUN and that allows me to sleep well without having to worry about what might happen.
For some detailed examples watch my Facebook live recording:
Diversify and follow a strategy. That’s how you make money on the long run.