wabmester
Thinks s/he gets paid by the post
- Joined
- Dec 6, 2003
- Messages
- 4,459
HaHa said:Stop it Mr. Wab; this is incorrect thought.
The thought police are always harassing me.
Here's another thought. People often say "you don't lose money unless you sell." Well, the same applies to your winnings, of course -- you don't get to keep them unless you sell.
So, here's a mental trick that might help you deal with volatility. Keep a spreadsheet that tracks your net worth, but always track just your cost basis and any distributions. Never track capital gains or losses until you realize them.
You'll never get elated by false winnings (hey, I made 20% last year!). You'll never be bothered by false losses. And you'll probably be pleasantly surprised once your sell something and track your realized gains. I usually just use this trick with assets that are difficult to mark to market (like real estate), but I'm considering it for all assets.... BTW, this trick also makes you appreciate dividends a lot.