I’ve been investing in tech company for a long time and luckily, I’ve seen some pretty solid gains.
Right now, I keep a few months' worth of salary in my savings account as an emergency fund, but everything else is fully invested in the market.
The problem is, whenever we hit a downturn like the tariff issues or Iran war this year, I never have any cash left to buy the dip.
On the other hand, now that the market has recovered, I find myself hesitating. Feel like lowering my equity exposure will make me miss out on potential gains during a bull run.
Do you actively take profits to maintain a cash position, or is your strategy to stay fully invested regardless of market swings?
Regretting not having cash during the dip, but hate selling my winners.
byu/Andy_parker ininvesting
Posted by Andy_parker
4 Comments
So aim of the game is to always trade just 50% of your cash.
If you don’t use your credit card points to travel use them to pay some bills that could free up some cash for you to play with.
Outside of your emergency fund, is your money invested into a tech company? or is it invested into the market at large?
It is always easy to buy the dip in hindsight, but you could have bought down 3% and watched it go down another 4-5% and be kicking yourself just the same.
I invest once a month, every month. I have fun watching my portfolio bounce around between buying days, but don’t get too bent out of shape about it
My cash position is any money I’ll need within five years – whether it’s for a vacation, car, gadget, an upgrade, or whatever. I think it’s wise to throw this in the market if there’s a long-term opportunity. The rest are automated and invested in the market.