Chart of the Day

Chart of the Day: Don't Sell When the Market is Down

Today’s Chart of the Day from Visual Capitalist shows the impact of missing just a few positive days over the last 20 years. If you've followed the blog for a while, you already know that missing just a few days can be devastating to your account. As an example, investing $10,000 and missing just 40 out of the previous 5,040 trading days, your investment goes from $65,000 to only $8,048.

This chart also notes something new: Seven of the 10 best days took place during bear markets, where the market was down 20% or more. This reinforces the idea that selling when the market is down is not a good move.