Why are they smiling?
The markets are tanking! Investor portfolios are dropping in value! We are entering bear market territory (a drop of 20%). What is there to smile about?
Lots, for Monday Morning Millionaire Program investors! Over the course of the last decade, we have not seen as many buying opportunities in one year as we have seen in 2018.
He is retired, she is at the start of a promising career. Both follow the Monday Morning Millionaire Program. Both are small investors and both practice the habits of highly effective investors.
This is a good place to define a small investor. The adjective “small” does not apply to the size of the investor’s portfolio. It is a term used to refer to individual investors also known as retail investors as opposed to professional investors who are usually not investing their own money but that of an institution or fund.
History shows that the main problem with most small investors is that, at a time like today, they sell assuming that the market will fall more. When the market rises, they buy, believing that the market will rise further. When they sell, most small investors are selling to smart investors like the Monday Morning Millionaire Program members who are doing the buying. When most small investors buy, they are buying from smart investors like the Monday Morning Millionaire Program who are taking profits.
Most risk is in price. The lower the price, the lower the risk. Lower trending prices result in lower trending risk levels. So what is the best way to take advantage of this trend?