Undoubtedly, market conditions do not change as they are hit by a flood! Again after GameStop shares soared to the detriment of Wall Street investor groups and attracted the attention of the United States (US) administration.
US millionaire and investor Mark Cuban via a tweet on Twitter yesterday shared his advice on stock investing: "If you buy stocks because you want the price to go up and solve financial problems, that is actually the wrong time to invest".
If you are buying because you need the price to go up and solve a financial hole you are in, that is the EXACT WRONG time to trade. And we all have to respect people who choose to sell because they need to. Bills dont care what the market does. Get right and come back later
- Mark Cuban (@mcuban) February 3, 2021
If you want to know, most experts advise to have a large amount of savings before taking the risk of investing in market stocks.
Studies also prove that long-term investments in passive funds such as the S&P 500 or in mutual funds produce better results than choosing stocks that will soar in the market (stock picking).
This figure is often the target of investors for stock-related questions, including investors from WallStreetBets asking about GameStop stocks: sell or hold after the recent big surge before returning to low causing many to lose their minds.
However, Cuban via Ask Me Anything on Reddit revealed that if he owns GameStop shares, he will hold.
He further explained, “When I buy stocks, I will make sure my purpose is to buy them. Then I will HODL until I realize that something has changed.
"Prices may go up or down, but if I still believe in the logic that led to the purchase of the stock, I will not sell. But, if something unexpected happens, then I will sell. ”
If understood properly, the Cuban advice is comprehensive. Not just focusing on stock investing. Those of you who invest in cryptocurrencies can also apply for advice if you are stuck in a situation to sell or hold.
