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Dealing With Falling Stocks

I often remind you that when stocks fall, it's actually a good thing, not a bad thing. You are better off looking forward to stocks falling over rising. 

I frequently give an example: by telling you to imagine yourself going through a drive-thru to pick up your favorite burger. Let's say this burger is worth $6.00, that's what you are used to paying. You come back another day and realize that it's now selling for $4.00 (at a discount) its on sale. Are you going to pull your hair out because you paid $6 for it last time? Of course not; that burger you love is now cheaper, which means you are saving money and getting a great deal. 

You should view stocks in the same exact way. The only catch here is that you must know what you are getting yourself into. If you are panicking, worried, hoping, or praying, the truth of the matter is you don't actually know what you are in. You may know enough about a company, to think you are right. But, not enough about the company to know you are wrong. 

You might be taking my words with a grain of salt, and overall end up ignoring it and doing your own thing. Well, I want to go ahead and share these two videos by Peter Lynch. An American investor who has a net worth of $450 million. I suggest you watch both videos fully, and don't be afraid to re-watch them a second or third time.


When you know the true value of a stock, and when you really understand a particular business. All that matters that you got it at a discount. It does not matter if you bought at $10, and it falls to $6. When your goal is $20+, as Peter Lynch says. $10 to $20 is excellent, but $6 to $20+ is tremendous. You know what to do from there.

Remember what I always tell you: 

Don't worry about where your stock is or where it can head. (When you have done your research) what you should worry about is what you can do to ADD MORE MONEY.

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