There's blood on these streets. BUY THE DIP!

[A quick thread]

So yesterday I sold two of my holdings that I didn't like very much for the following reasons:

https://t.co/eojTjDJc5B
I know what you thinking: "smart move! 😎"
Will I be going on a buying frenzy today? Not quite. I think I'll sit today out. I've had some great lessons about the dip that I'd like to share with you.
I came across this fortune teller on YouTube who could predict pullbacks. 😂😂😂

https://t.co/rNlOWKsiok
Of course I thought to myself, I'm going to be smart about this and decided to split my money over the full week because no one can predict the bottom. However, this happened:

https://t.co/RLYJLtKfGb
The lesson? Never get too greedy and never suffer from FOMO.

Here's an even better reason why. Imagine today was 21 Feb '20. Apple and Amazon fell over 2% and your favourite stock probably fell by even more. The whole market is red.
If you bought today (21 Feb '20) you would've exited the battle early as stocks continued to fall further.
I think we can all agree that we keep cash reserves for significant pullbacks in the markets. However, those pullbacks do not happen over night. They need time to mature. Days, sometimes weeks.

Day-to-day dips can be caught any time. Market pullbacks are really worth a buy.
So what do I do on days like today? I observe the market, review my wishlist and PRAY that the market continues to fall. If it rebounds tomorrow? Then it wasn't worth a buy.
https://t.co/Gu5XEYnX2c

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I’m torn on how to approach the idea of luck. I’m the first to admit that I am one of the luckiest people on the planet. To be born into a prosperous American family in 1960 with smart parents is to start life on third base. The odds against my very existence are astronomical.


I’ve always felt that the luckiest people I know had a talent for recognizing circumstances, not of their own making, that were conducive to a favorable outcome and their ability to quickly take advantage of them.

In other words, dumb luck was just that, it required no awareness on the person’s part, whereas “smart” luck involved awareness followed by action before the circumstances changed.

So, was I “lucky” to be born when I was—nothing I had any control over—and that I came of age just as huge databases and computers were advancing to the point where I could use those tools to write “What Works on Wall Street?” Absolutely.

Was I lucky to start my stock market investments near the peak of interest rates which allowed me to spend the majority of my adult life in a falling rate environment? Yup.