Take Advantage of Declines

Many investors have sold shares these past two weeks, either taking profits from highs or believing there is a bull market coming soon. The taking profits is understandable risking money you want some return and taking a little from the high point is very good. You can set it aside to have Christmas or renovate the house. Or take some profits and reinvest when the market has a pullback. It's almost what the people who sold because of a negative view of the market are doing. They are selling now and hopefully will buy shares back later for a lower price to make even more money. Those investors could also just have a short position out on stocks and will make money on the short. 

We as savvy investors know to take a little money when stocks reach the high point to either incest in something that can go up or sit on the sidelines to reinvest when stocks go back down. I don't believe in timing the market and this is not the same. This is being wise and making a real profit on a gain and then reinvesting it at a later date. As an investor I do not feel bad if I sell some of a stock to take some profits and it goes up because I should still have some money in said stock unless the company has changed policies or management that will negatively affect returns. 

So with this recent pullback, I am reinvesting money into the stock market I took out and putting more money in companies that have long term futures. Not every single one will last forever and some might even still have further room to go down but since research was a major factor in deciding which stocks to invest in, I am confidant that the choices will give healthy returns in the years to come. Do not be scared of a little pullback, take advantage of it.