Chapter 72 [Instructions on buying index without operation and never selling]

Source:https://www.facebook.com/100063294665283/posts/716148080505008/

[The Origin and Today of James] Chapter 72 - [Instructions for buying the index without operating and never selling! ] (10/10/2023)

The explanation of what we call buying index without operating and never selling is as follows:

ㄧ. Buying the index means that there will never be any problems with the target we choose. So you can never sell it. You can buy it anytime, if you have money.

2. Always hold index funds and never sell them. Unless you need money, sell as much as you need.

3. Don’t operate, that is, don’t think that the market has risen too much, so you want to sell high, wait for the low point to buy back, want to sell high, buy low, or buy low, sell high, and earn the price difference. In the end, it usually becomes chasing the high and killing the low. Also, don’t panic sell just because the market has plummeted (this is the most common mistake made by ordinary investors). The key to successful investment is to buy and never sell, no matter what the market is like, never sell, and don't try to make a profit on the difference. (However, in order to balance the cycle, you can adjust your position defensively and aggressively, but you must do so when you have the ability to understand the cycle).

4. Buy as long as you have money. Don't guess or wait for the market to see whether it will fall further before buying. Anyway, buy if you have money, and you can buy in batches, but you must not wait thinking that the market will fall again, or guessing whether the market will correct more. That means never Time the market.

In summary, you can buy in batches, and if there is a drop, you can buy more until all the money to be invested is used up.

After buying, don’t sell. Of course, if you don’t sell, you won’t operate! That is to say, don't be tempted to sell high and buy low, or buy low and sell high, and don't sell out of the market because you are worried about the risk of the market falling.

Market risks will pass. Don’t sell and leave the market just to avoid risks or bubbles. I believe the index will eventually rise back up. (The market fell by 35%-60% in 2000, 2008 and 2020. In the end, the market rose back to new highs! This time will be no exception, there is nothing new in the market).

So buy the index and never sell it, that’s it!

Hope everyone can understand! This is the best way to make money by investing in the market!

If in doubt, we can discuss it!