I’m not a day trader. I’m an investor. I guess. I’m also frugal. And I’ve decided that I’m going to drive my beat up car until it stops running. Everyone has already seen its condition as far as my coworkers and friends go, so it’s not that big of a deal to keep driving the beast until it totally poops out. That said, it hurts a bit when my networth drops $25k in a month due to stock performance, and I still don’t have a new car.
Apple, as I’m sure you know, is not performing well – so that attributes to a large chunk of my drop in networth. I was up to $208k, earned a bonus of $3k and received my $4k after-tax income, all to see my networth fall to $195k before recovering a bit (I’m back at $200k-ish right now according to my PersonalCapital.com records.)
Now that I have serious dough in my accounts, the ups are exciting but the downs really hurt. I still think my stock picks are somewhat solid (afterall, apple has still brought my portfolio up significantly since my average share price purchase was $330 and the stock is now $580 even on a dip… and I have 100 shares.) But yikes, watching stocks go up and down can give a person a heart attack. I just hope the fundamentals (P/E, QoQ growth, etc) play out as they seem they should, and I let the emotional traders win or lose based on luck.
Today, I also decided to max out my 401k for the year. I’m at about $12k in investment now, but it seems silly not to put the final $5k in, even if I don’t get a match. I figure there will be plenty time in my life when it will be hard to find an extra $5k to invest, so I might as well get the best tax benefit possible for now. That will also delay my getting a car… probably until mid 2013… but hopefully by then I’ll have gotten another raise and I might be able to swing a new set of wheels sooner than later.
Or maybe I’ll get lucky and the stock market will shoot straight up — which won’t help my liquid funds at all, but at least will help hit my goal next year of $250k in savings. That seems so far away and I know the stock market is so fickle I could get there much sooner or later than I thought at this point. I really need to figure out how to further diversify outside of stocks and ETFs, but every other type of investment seems too complicated.