The stock market has been going in the wrong direction for most of 2018
I’m at some point excited to see how 2019 will go, but also a bit nervous.
As I’m still new in the investment game, I still think it is interesting to check charts several times a day, and see how the share prices are doing.
At the same time, I’m trying to convince myself not to look that often, as I’m in it for the long run!
The concept of accumulation
Even when stock prices are going down, if you are in it for the long run you should keep buying.
No normal person can know the exact movement of the stock market
Here is why you should still continue to accumulate even if it seems to make no sense!
The stock market have had some serious crashes over the years!
If your trying to time the market, your most likely just speculating or guessing.
But! historically, the market has always risen again, and over the years, reached all new heights.
As long as you keep accumulating, every week/month in the end you should come out on top.
Dollar cost averaging
When you keep accumulating, you will also be using dollar cost averaging.
The idea is, you wont be trying to time the ups and downs of the market.
Instead you will be buying at a steady pace, over a long period of time.
Sometimes you will be buying at the all time low, and other times at the all time high.
In theory, that should lead to buying at an average price (as of the name dollar cost averaging)
That average price, should after a couple of years accumulation again in theory, be lower than the current price.
Of course there are no guarantees, this is investment, only invest what you can afford to loose!
Check out how i’m currently doing here