I have been investing in stocks for the last 2 years and with annual roi around 5% . Is it a good strategy to sell off everything and start over during the next recession / correction.. TBH this is because im getting irritated with the daily fluctuations and meaningless drama in the market in recent times
Do you know how to calculate ROI? If 5% is right, you might need to get out and get into cash under your mattress S&p is up 20%
I am a beginner. Not sure if my ROI calculation is perfect. I average the amount I invested for 2 years and the profit I made .. and considered 75% of profit since it will be taxed for short term gains.
Example : if I invest 25k for a period of 2 years and my current profit is 5k I consider my profit as $3750 and my annual roi as 7.5%
If you think you’re better at market timing than, oh, everyone who’s ever lived, then maybe it would be a good strategy.
5% annualized ROI. Yeah, he clearly sucks at market timing.
Use automated trading platforms like wealthfront and betterment .. go long term since it seems you suck at trading
You can’t the time the market.. Plus to get it right you have time the market atleast 2 times, once to exit and once to enter. You maybe better off diversifying investments having enough cash to wait out a recession.
I started with initial 49640 in 2016 and now it’s 97600. I have seen ups and downs and stayed calm.. market is not crashing tomorrow but obviously putting all your eggs in one basket will cost you a fortune no matter which market it is.
This is how you make money.
Echoing what others are saying: if you aren't a professional investor, then put your money in low fee index funds, and don't cash out until retirement. Attempting to time the market is going to get you in trouble. A family friend thought the market was going to crash in 2014. He pulled all his money out of the market and has held cash ever since. He missed out on somewhere close to a million in gains. Really hurts because he is near retirement age.
Do not make such a crazy mistake. There is no way to know when the next recession strikes. No one, I repeat no one has ever managed to consistently and successfully time the markets. You will end up paying short term capital gains tax and chances are you won't manage to enter the markets for next n years if you are waiting for recession. You lose all the potential capital gains due to that. When recession strikes you are still supposed to keep buying at lower prices to reduce your average cost. Not a financial advisor, do your own diligence. Just giving you my 0.02.
Tech Industry
4h
1586
Avoid teams with only Chinese or Indians especially with a Chinese/Indian manager
Ask Blinders
Yesterday
1129
Tipping culture is really getting out of control! Waiter gave me ‘a look’ because I tipped her 10% for ‘BAD service!’
Tech Industry
3h
577
I wish I were East Asian instead of Vietnamese (Southeast Asian)
2024 H1B
Yesterday
1575
H1B golden era is over
AMA
Yesterday
2069
I’m a professional coaster AMA
Unless you are a professional trader, stay for the long term and ignore the noise.