This piece is part of my 2016–2026 archive migration. Some original formatting, content, and external links may be missing, changed, or not be optimized.
Intelligent investors don’t care about market fluctuations
Don’t Keep Hawk Eyes On The Stock Market.
Someone asked me the other day, “Is crypto still going to be around in the near future? It looks to be doing pretty bad right now.”
I rolled my eyes inside and conveyed the following:
Investing is a long game. If you’re a day trader, you’re really just a gambler (a fact most people don’t want to face).
If you look at the history of the stock market, you’ll notice we have bear markets, bull markets, and so-so-steady markets. But if you stay in the investing game long enough, you always win.
It’s impossible to fail at investing if you’re in it for the long haul. Crypto and blockchain companies are highly likely to stick around, as are many other tech stocks.
(Note: I rolled my eyes because this person knows better.)
Stocks Are Dropping Though
Yes. I’ve seen the numbers consistently drop the past weeks, and do you know what I feel? Nothing.
The best response to emotional investors when they ask if the market will go up is: I don’t know, and I don’t care (Benjamin Graham).
…Okay, maybe I feel a little excited because I get to buy investments at a discounted rate.
When the stock is down, buy. When the stock is up, buy. Dollar-cost average your way into wealth.
The Two Types of Investors
Type 1 – Emotional Investors
These folks sell their stocks as they feel defeated with the abating price of their stocks. Most people don’t want to buy more stocks when the price is down; they think this idea is outrageous, but guess what? It isn’t. You’re lucky when you get to buy low.
It’s still good practice to buy high, but you’re not as lucky with getting more bang for your buck. However, dollar-cost averaging saves the day and makes up for your higher stock purchases by giving you hefty returns on the discounted stocks you buy.
Dollar-Cost Averaging
Invest on a regular cadence – usually weekly, bi-weekly, tri-weekly, or monthly. By doing this, you avoid many stressors with trying to time the market (impossible to do unless you have some secret knowledge; if so, please share as long as it’s legal.) The more consistently you buy stock, the better – aka a weekly cadence.
Suppose you had invested $12,000 in the Standard & Poor’s 500-stock index at the beginning of September 1929, 10 years later. You would have had only 7,223 left. But if you had started with a paltry $100 and simply invested another $100 every single month, then by August 1938, your money would have grown to $15,571! That’s the power of disciplined buying – even in the face of the Great Depression and the worst bear market of all time (Benjamin Graham).
Still On The Fence About Dollar-Cost Averaging? Do This.
Invest a lump sum of money and also invest on a regular cadence. There’s no harm in doing that.
Type 2 – Intelligent Investors
These folks hold onto their stocks and buy more. Want to know what I did in 2020? Invest-a lot.
Intelligent investors don’t concern themselves with vigilantly monitoring the stock market as a mother watches over her newborn. No need.
The intelligent investor understands one thing: this is a long game. To play to win, you got to stay in the game at all times. The stock market rewards those who are faithful. Go figure.
This content is for informational purposes only — not professional advice. Consult a qualified professional before making any major decisions.