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Modest Money
09/25/2012 7:33 am

I totally need to learn more about investing. I don’t know enough to know when the market cycle may be heading into a rough time. So I’d probably just have to ride out those bad times. Since you’re saving up for a down payment, it does make a lot of sense to get some money out of the market while you can.

Liquid
09/25/2012 7:37 am
Reply to  Modest Money

Sometimes riding out those bad times is the only thing we can do. At least you are consciously aware that you have to learn more about the markets. That already puts you ahead of those people who don’t even know what they don’t know (0.o)

John S @ Frugal Rules
09/25/2012 12:15 pm

Excellent points. Having cash on hand for a hedge fund is key so they can make movements as they wish. They’re really no different than an individual investor, as you say, just that they generally have much larger sums of cash. In this market, getting out and taking profits is as important as ever, especially if you have a goal that you’re shooting for.

Liquid
09/25/2012 9:51 pm

Knowing when to get out while you’re still in the black is a hard, but helpful skill to have. You can never lose money by making a profit.

Steve@The Loonie Bin
Steve@The Loonie Bin
09/25/2012 2:34 pm

Instead of re-investing my dividends, I park them in money market type of account until I see an opportune time to buy. That way I still make some interest while I wait for the markets to level out after their latest dip.

Liquid
09/25/2012 9:52 pm

You should start a hedge fund Steve. Sounds like you’ve figured it out :0)

DebtGirl
DebtGirl
09/26/2012 3:07 pm

I need to learn more about investing too, but right now, just living paycheck to paycheck and getting out of the hole I dug. Take it from me, do it now while you are young because life comes at you fast!

Harry @ PF Pro
09/27/2012 11:23 am

Good call! markets have been down the past couple days(until today!) It’s definitely true that the market is cyclical. I don’t think it’s a bad idea at all to lock in gains. Let’s say the market goes up 10% in 6 months. You sell your funds b/c you think the market’s gonna go down, oh wait, the market goes up another 5%. Who cares!? You already made 10%!! I wouldn’t mess around on the other end of the spectrum though b/c that’s how you lose a lot of money.

Liquid
Admin
09/28/2012 7:02 am
Reply to  Harry @ PF Pro

Yup, it’s pretty much all relative. I would be really happy to lock in a 10% gain for the year 🙂

Harry Campbell (@PFPro1)
09/27/2012 6:02 pm

Good call! Markets have gone down a bit this week(until today).. I don’t think there’s anything wrong with locking in gains but I definitely wouldn’t try and time the bottom of the market, that’s how people lose a lot of money.

If I make 10% off my investments in 6 months, it’s not a bad idea to sell off, if the market goes down, you’ve made even more money( by not losing it) and if it goes up, who cares you’ve made 10%. Problems arise when it keeps going up and up and then you finally jump back in and then it goes down.