Sell. Alright there you have it, now you can click off the site if you want. If you want to learn a little bit about the nature of stock market declines and crashes and why selling is a bad choice then continue reading. I will state that this advice and information assumes that you don’t have all your money in a random stock that you got from a random stock picker. Now, I will give you 3 good reasons why you should never sell during a dip, with a couple exceptions.

Now let’s just get the exceptions out of the way. The first one is if you were over leveraged and don’t have enough money to put food on your table because you had no money in your savings account. The second exception is if you had put everything and the house on GameStop and now they are going bankrupt, probably time to pull out before your stocks are worth nothing.

So, with those out of the way we can get back to the advice for those of you with good solid stock choices. The first reason you should never sell is that the stock market ALWAYS goes up. Now obviously there are a million different examples of the overall market going down, but other than the most reason dip, which of writing we are still in, after every crash the market has recovered to above what it was before the dip. This means if you just hold onto your stocks they will be worth more eventually than they were before the market crashed.

The second reason is that sell when the stocks are low will lose you an enormous amount of money. The exact moment you probably think you should sell is usually the moment it starts to turn around. Well, if you are me it is at least. This is probably the most obvious reason, but it needs to be said.

The last argument might be a little “controversial”, but that is that if the market fails and the whole system fails, well then your money will be worth more for burning to keep warm than it will be for buying things. Some people worry that if the whole stock market collapses then they will lose all their money and if they had just sold for a loss at least they would have the little cash they would have got for it. My argument is if the market crashes so does the value of the dollar. The entire financial system would implode, and at that point the dollar would be worth nothing anyways, so might as well keep that money in the stock market, because if all that money gets lost, well that money will be worthless as a number in your bank account anyways.

That all being said, I am not one of those doomsday financial gurus. I think the market has seen much worse than we see now and it has always recovered. I think that the end of the human race is more likely than the end of the stock market….well maybe they will come on the same day. Until the day I see people burning dollars for heat I wont be selling any dip. Again, I also don’t invest into risky companies that might collapse due to a dip/crash, so that also plays a part in my planning.

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