We've had a few blips in recent days and a hiccup the day before I am posting this video with the share prices of some big companies falling for a combination of different reasons.
Whether it's a blip, a correction, a market crash or the start or a sustained bear market, there's a few important things to remember for anyone who is investing for the long term.
I am not a financial advisor and can't provide any financial advice - this is just my personal opinion and some tenets by which I run my investing strategy.
1. HOLD ONTO VALUE
Too often people jump the moment share prices begin falling thinking that they can then time it and buy in at the bottom except often it is very hard to know where the bottom is or how sharply the price bounces back.
A company can dip one day and go right back up the next or continue falling for weeks.
I make long-term valuations of companies that I invest in and I make my investing decisions based on those valuations. If the price falls and there isn't any material change to my valuation, I am very happy to keep holding onto the shares.
The difference between when I bought and my target price remains and whenever I invest in a company I expect there to be a lot of ups and downs in between.
2. BUY IN AT LOWER PRICE
For the same reason as above, I also love the opportunity to buy into stocks when they are going on sale.
If my valuation of the company remains high, a drop in share price just means I can go and buy more of the stock before it then goes back up at some point in the future.
Sure - there are risks and it may not but if my analysis remains sound in my eyes, I see it as an opportunity to invest more.
If I happen to sit on cash or be able to use some of my income to put more money in the stock market, I see it as a way to buy the exact same share at a huge discount so I continue investing if I can.
3. KEEP EARNING MONEY
To me earning money and investing are two very different things and I don't like mixing the two together as many people do online.
Investing is volatile, unpredictable and requires a lot of money to make money.
I want to make sure that whatever happens with the markets that I am able to earn a living, provide for my family and pay my bills so it's critical to ensure that I have a way of making a living that is not based on stocks or investing.
4. KEEP CALM
Stock Market crashes are often a time when things get heated and some people can make fast irrational decisions.
As I know that I am not planning to do short term investing or make rapid moves, I don't focus on what the share price did 1 minute ago, 1 hour ago or what it might do in the next hour.
I continue looking at a 3 to 5 year horizon trying to understand which companies I want to be invested at that point in time and what my assessment of their valuation is.
5. SMASH THE LIKE BUTTON
If you enjoyed the video and found it useful, please do us a favour and smash the like button for the YouTube algorithm so that this video can reach more people.
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DISCLAIMER: Some of these links may be affiliate links. If you purchase a product or service using one of these links, I will receive a small commission from the seller. There will be no additional charge for you.
DISCLAIMER: I am not a financial advisor and this is not a financial advice channel. All information is provided strictly for educational purposes. It does not take into account anybody's specific circumstances or situation. If you are making investment or other financial management decisions and require advice, please consult a suitably qualified licensed professional.
Whether it's a blip, a correction, a market crash or the start or a sustained bear market, there's a few important things to remember for anyone who is investing for the long term.
I am not a financial advisor and can't provide any financial advice - this is just my personal opinion and some tenets by which I run my investing strategy.
1. HOLD ONTO VALUE
Too often people jump the moment share prices begin falling thinking that they can then time it and buy in at the bottom except often it is very hard to know where the bottom is or how sharply the price bounces back.
A company can dip one day and go right back up the next or continue falling for weeks.
I make long-term valuations of companies that I invest in and I make my investing decisions based on those valuations. If the price falls and there isn't any material change to my valuation, I am very happy to keep holding onto the shares.
The difference between when I bought and my target price remains and whenever I invest in a company I expect there to be a lot of ups and downs in between.
2. BUY IN AT LOWER PRICE
For the same reason as above, I also love the opportunity to buy into stocks when they are going on sale.
If my valuation of the company remains high, a drop in share price just means I can go and buy more of the stock before it then goes back up at some point in the future.
Sure - there are risks and it may not but if my analysis remains sound in my eyes, I see it as an opportunity to invest more.
If I happen to sit on cash or be able to use some of my income to put more money in the stock market, I see it as a way to buy the exact same share at a huge discount so I continue investing if I can.
3. KEEP EARNING MONEY
To me earning money and investing are two very different things and I don't like mixing the two together as many people do online.
Investing is volatile, unpredictable and requires a lot of money to make money.
I want to make sure that whatever happens with the markets that I am able to earn a living, provide for my family and pay my bills so it's critical to ensure that I have a way of making a living that is not based on stocks or investing.
4. KEEP CALM
Stock Market crashes are often a time when things get heated and some people can make fast irrational decisions.
As I know that I am not planning to do short term investing or make rapid moves, I don't focus on what the share price did 1 minute ago, 1 hour ago or what it might do in the next hour.
I continue looking at a 3 to 5 year horizon trying to understand which companies I want to be invested at that point in time and what my assessment of their valuation is.
5. SMASH THE LIKE BUTTON
If you enjoyed the video and found it useful, please do us a favour and smash the like button for the YouTube algorithm so that this video can reach more people.
WANT TO TRY INVESTING?
SIGN UP FOR ETORO (MIN DEPOSIT $200)
https://med.etoro.com/B15358_A95689_TClick_SSasha.aspx
67% of retail investor accounts lose money when trading CFDs with this provider. Your capital is at risk. Other fees may apply.
GET A FREE SHARE WORTH UP TO £200 WITH FREETRADE
https://magic.freetrade.io/join/sasha-yanshin
You need to sign up and make any deposit to get the free share.
GEAR I USE FOR MAKING VIDEOS
https://kit.co/sashayanshin
DISCLAIMER: Some of these links may be affiliate links. If you purchase a product or service using one of these links, I will receive a small commission from the seller. There will be no additional charge for you.
DISCLAIMER: I am not a financial advisor and this is not a financial advice channel. All information is provided strictly for educational purposes. It does not take into account anybody's specific circumstances or situation. If you are making investment or other financial management decisions and require advice, please consult a suitably qualified licensed professional.
Hi Sasha, really like your mindset of focusing on the value in the future as all that matters, so many good videos lately!
Smashed like button so hard that touch pad went for a vacation payed by dividends from stocks 😀
I sent a Freetrade link to 3 of my friends who opened an account through that link and invested in shares and none of us got a free share like they said we would 🤔
Hey Sasha! I am currently feeling my way into investing with Freetrade. I don't plan on spending time researching specific stocks and making judgements on whether they will grow. Am I the person that would be better off just be investing in ETFs and Index Funds?
Seems that you first point is more opinionated than fact. If you buy a share for £1000, and it is up 25% before the crash (1250) You set a stop loss at 5% below that price and it triggers you have retained 20% profit (1200). If the price continues to dip another 20% to the share price you originally bought at (1000) then you are keeping your £200 profit, PLUS buying back the stock at 1000 OR LESS, (the price you believe to be of cheap value)
Whereas you suggest that you can miss out when the market reverses, you miss those gains. But you would be missing those gains by NOT selling and simply holding?
I’m confused.
If you simply hold onto your stock and the price dips dramatically to the price you bought at or lower. you essentially lose all your gained profit, and are basically just waiting for the price to go back up again. Does not make sense
I’m not sure If I agree with your first point. If you have a trailing stop loss (not autoomatic just updated as you invest), and you want to take profit IF the price continues to dip, instead of lose all the profit you have built, if the market continues to dip, you can then buy more of the ‘discounted’ shares because you saved your profit.
Example:
if you buy a share for £1000 , and it is up 25% before the crash, and you have a stop loss set at 5% below that price. You will sell at a 5% loss of profit so you will have £1200. If the price continues to dip and shares dip another 20% , and you re-buy those shares. Essentially you have kept 20% of your profit and re-bought them at a lower price.
But it seems like you are suggesting to just hold no matter what? That can work if the dip has a fast reversal, but why not take profit and re buy at lower price? Why don’t you think that’s a good tactic I am confused
I recently discovered this channel on my recommendations page and you are hands down the most honest finance youtuber I’ve come across. Also the fact that you try and engage with every single comment is nice to see. You’ve earned a sub.
Invested in bitcoin last summer. Totally forgot about it, opened Coinbase and doubled my money!! Realised I only invested a fiver 😄
Sasha thanks. Could you do a video on how to work out if a stock is worth investing in? What criteria would you recommend and why? Love to hear your thoughts on this more technical side of investing. Thanks.
Thanks for you response👍I appreciate it , I think it's called fairtex or something like that , it's being advised all over, . But After reasurch I have put a list of the top 12 trading site's I have found for UK & lots who are knowledgeable are saying IG. is possible the best for UK so I will have a lot at IG and see 🤔 good luck god bless all 👍☘️🙏
Can I ask why Royal Mail? What's your opinion about it? What do you see in it in terms of growth?
Great stuff thanks 👍But What is the best platforms to go with for buying stocks and shares also American companys ect 🤔, good luck god bless all ☘️🙏
Thanks Sasha for the valuable advice. Could you make a video on how to evaluate a stock? Specifically from a technical standpoint? Key financial ratios to take into account to understand growth, value etc. I know there are lots of videos out there on this topic but would like to get your perspective.
Appreciate how simple you keep everything. Wish I’d found this channel a long time ago
Good video but it is focused for investment for individual shares. I am guessing same suggestion is valid for people investing in funds.
As UK citizens we also have the pound hammering our gains for the past several months
Hi Sasha, big fan of your videos and now I never miss an upload. Congrats on 10K! You and Damien Talks Money have changed my whole financial perspective in the last few months. Obviously, you are not a financial adviser so I respect what you can and cant say on this platform, but one thing I'd like you to teach a bit more about would be if you have a certain discipline when it comes to "buying the dips"? What I mean by that, is say I buy something on Monday, and on Tuesday it's down 5%, shall I snap up some more shares right then? Or wait until Friday when it might even be 10% down? Basically what I am worried about doing is trying to put out random fires very quickly. Should I structure this so that for example, every 1st Monday of the month is for buying dips I have that day, Every 2nd Monday is for new investments, every 3rd Monday is for topping everything in the portfolio up? Would love to know your thoughts as I have a budget for each week and there's so much I'd like to do with it, but staying calm and being patient is key! Thanks very much for taking the time to read this. -Max
You know, some heebie jeebies are unavoidable. But you need to realize that you dont know 5hit and you will do stupid 5hit. And market will do whatever. Now i don't even bother doing research. Market is doing it for me. All in all, it's just a game. Or do you think you can see something that full time fund managers of all worlds cant? retail investors are always on the losing side. And we are due to a correction anyways.
when i started with invesitng, my thingy went down like 15% in a few days. was realy sad for my (objectively) poor timing. diamond hands and buy the dip later, i was +15% in next few months, really excited. Now i am at +35% (well, +20% after today). But now it's hard to get excited about more or less random events. Long term, stonks usualy go up. so unless you are paper hands, chances are, everything will be fine at the end. and if no, nothing really matters anyway 😀
As a complete beginner, with very little money invested, these are interesting times for learning!
Buying stocks is so addictive for me. I'm tempted to buy more every time they have a dip. So I can celebrate when they both go up & down. NB you need a load of spare cash for this.
Best time to buy now that prices are falling. It will pay off in the long run
Hi Sasha.- great video, which method do you use to value a company and then see decide whether it is currently undervalue etc?
Thanks
Jeez, you read my mind Sasha. This is exactly what I needed to hear right now.
Does anyone know any trade platform (Except from Trading 212 and Freetrade), that offers fractional shares?
Do not get emotionally invested in your stocks. Know why you purchased them and stick to that why. Always think long term life is long term. Stay strong Kings!
Great advice! My stocks are falling faster than the Persian ambassadors down the Spartan well. (300 reference).
Couldn't agree more on stocks being for the long term. I was just looking at some of the big tech stocks and they are still up from 3 months ago. That's a great situation to be in…
Completely agree with you, a market crash to me is just a discount. The only people a market crash remotely concerns are those that are living off their stocks by selling a small portion per year, but even those people should have an emergency fund and cash reserves to minimise loss.
Property investment is better for the average Jo imo as its less emotional
The slow transaction speeds and the far smaller swings in price (property doesn't typically go up more than 10% in any given year and very seldom does down and when it does it often doesn't go down more than 10%)
This means the average property investor holds for 22 years (in the uk) and doesn't suffer the emotional swings of the daily stock market
Thanks Sasha. That's exactly what I'm doing. I'm down by 6% (around 300 pounds) which sounds scary but I'm keeping calm because I am confident that the companies I invested in such as Microsoft, Apple and Palantir will be in a much better position in 10 years. I wish I had more money to buy during the dip for some discount shopping tho