Emotional investors tend to sell when the market is going down and buy when the market is going up. They should be doing the opposite.
Image source: Pixabay
Emotions and investing don’t mix. Emotional investors tend to sell when the market is going down and buy when the market is going up. They should be doing the opposite.
As shown below, if you only owned the US stock market on the day after up days since SPY began trading in 1993, your cumulative gain would be just 44%. If you only owned the market on the day after down days, you’d be up 851%!
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