thefed
Thinks s/he gets paid by the post
- Joined
- Oct 29, 2005
- Messages
- 2,203
Just in the ladt 3 months or so, I've devised a new strategy for hedging my losses in this down market.
I have been buying in after every 2% or more down day. 2% down= .4% of my cash I'll buy in with, and proportional thereafter...i.e a 8% down day would equal buying in with 1.6% of cash reserves
I am only 25 and plan on 20 more years of investing. As such, I KNOW I shouldn't be too worried, but it's hard to take the emotion out of this. I've busted my butt to pay down all my debts, become self-sufficiently self employed, and begin socking away bigger and bigger portions of my income....only to see 35% of my last 7 yrs of savings disappear in this last year or so.
BUT, I have had a 50/50 cash/equities split since last october when I though things got crazy....so I'm trying to hedge my losses by buying in heavily on the way down.
What's your strategy?
I have been buying in after every 2% or more down day. 2% down= .4% of my cash I'll buy in with, and proportional thereafter...i.e a 8% down day would equal buying in with 1.6% of cash reserves
I am only 25 and plan on 20 more years of investing. As such, I KNOW I shouldn't be too worried, but it's hard to take the emotion out of this. I've busted my butt to pay down all my debts, become self-sufficiently self employed, and begin socking away bigger and bigger portions of my income....only to see 35% of my last 7 yrs of savings disappear in this last year or so.
BUT, I have had a 50/50 cash/equities split since last october when I though things got crazy....so I'm trying to hedge my losses by buying in heavily on the way down.
What's your strategy?