So the Market Did Crash — Now What?

What to do when you’re left holding the bag.

Photo by Elijah O'Donnell on Unsplash

There are some unflattering terms for unsophisticated investors — weak hands, herd followers, and of course, bag holders.

Confession time, I fell into that category. The temptation to ‘be a contrarian’ was too high, and I invested a small amount into the stock of a company I thought was a sure thing.

Now that ‘sure thing’ is trading for less than half of what I paid for it and continues to drop.

Why don’t you sell your shares?

The self-preservation of the ego is a powerful human instinct. The more I cling to the hope that I am a savvy investor, the harder it becomes to cut my losses.
And so the frog gets boiled in the pot, refusing to jump out.

Photo by Ladd Greene on Unsplash

The self tries to preserve the ego at all costs; even to the point of going down with the ship.

Eleven years for a bull market is a very long run. Long enough to erase the memory of most investors. Every day dawns with new hope that there will be a rebound. Someone will announce a cure for COVID-19, and all will be right in…