“never sold in a panic”
I wish I could say the same. Nobody taught me to stay the course in stormy weather. I bailed out twice and got back in WAY too late. My retirement portfolio is probably half or 60% of what it would have been if I had not panicked.
I finally hired a financial advisor who set me straight. He showed me some great analysis of how being just a little bit late on market timing (both at top and bottom) really ruins your long-term returns.
Too bad. It is an easy and accurate calculus. Miss a bit on either or both ends and it can work our badly with no second chances. At most I trade near equally valued poor performers for better ones in a down. That usually works well enough.
It is hard to hold and keep your powder dry when all are in a panic around you. Best to walk away or try to find a good manager. That is another tough call that is hard to recover from if you choose poorly. Time is not your friend in those cases. It is equally hard to stay to your base hit strategy. if you have one, living with gains lower than the swing for the fence one hit or so wonders. One is very exciting when it is good but I prefer steady progress with less drama either way. Not sure which is best. Both can work.
Sorry to make an object lesson out of you, but I was always amazed to see this kind of post on a website like FR where I would assume people know better.
Fear and greed are the two worst emotions for investing. Someone who can’t control BOTH of these has no business sailing from the port in the first place. Add a large dose of ignorance to the mix, and you have a scenario not much different than a drunken 5th grader driving a school bus.