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Originally Posted by Jysin-DW  Basically, I started my engineering job back in 2002 right after the Iraq war was kicking off. The market went through the floor. I was maxing my 401k contributions (25% company match). The following years, that initial investment has earned some pretty hefty returns.
Buy low, sell high... its common investment mantra. |
Unfortunately the idiot investor believes in buying low and selling high, but in reality, they practice buying high and selling high. The idiot investor wants to see which way the market is going, so they liquidate and eat a loss. And then they don't realize the market is on an upswing, so they buy equities again on their way up. He doesn't realize that the "meat" of the gain is made in the tougher times. He follows this pattern his whole life, and when it comes time for retirement, he wonders why he invested so much and has so little to show for it.
The fun part for the people that ignore the market noise is that when the lemmings start coming back in the market, it drives up our portfolios. After the last recession, for the first time, my wife and I were shocked at how much we made when the weak hands starting coming back into the market. It made all of the sacrifice worth it. Our portfolio went from 35K to 75K in less than three years when buying stock became popular again.
That's alot of jack for people that grew up in poor crime-ridden neighborohds. Basic investing knowledge is available to everyone, but not enough people actually follow it.
