227) Why You Should Think Twice Before Selling Losing investments

227) Why You Should Think Twice Before Selling That Losing Unit Trust Funds

You had made your Unit Trust investment earlier. After you invested, the fund starts to lose money due to market down turn.

You waited for a while longer as you are hoping that the fund will start making money again. As you wait longer, the fund lost more money.

By now, you are already stressed with the losing investment. You are thinking whether to sell or not?

Before you decide to sell or not, do think again what was the objective of the investment.
Why did you invest into that fund?
What was the money reserved for?
Is it for retirement, education, house down payment, pilgrimage fund, etc.

Is the objective time frame achieved?
Is the investment still valid?
What are the market future potential?

If the objectives still valid and still within the investment time horizon, then you should hold on the investment.
Investments have their ups and downs. Remember the saying,
.
"Higher Risks, Higher Returns."

Nobody will give you a high return from low risks.
Everybody will expect a high return from high risks.

Many investors sold too early and only later to see the investments recover the losses and gain more.

When the investment is sold, the investor made losses and realised the losses. They will miss the upward recovery that is normal for a stock market.

They cannot stand the pressure of waiting and seeing their money keep losing more.

If the investment was made with the right objectives, the investor should stick to the objectives.
A strong investment that still has value will have the price recover.

"Price is What You Pay, Value is What You Get" ~ Warren Buffet

Be clear of the Price vs Value of your investments.

The simple idea of any investment or trade is to:
"Buy Low, Sell High"

Very simple to understand, but very difficult to follow.

Most people think they are investing, but in actual fact, they are trading.

Investors should know the time frame on how long to stay invested.
Traders should know the time to buy and sell.

If you find out the value of the investment and see the potential growth, then you are an investor.

If you keep monitoring the prices to find the lowest and highest, then you are a trader.

Be clear of what you are doing to the investments.


For more related articles:

Trader vs Investor
http://highlevelrules.blogspot.com/2018/07/trader-vs-investor.html


Time In vs Timing the Markethttp://highlevelrules.blogspot.com/2017/10/time-in-vs-timing-market_24.html


Price Top & Bottom Cyclehttp://highlevelrules.blogspot.com/2018/08/price-top-bottom-cycle.html