Don't sweat the short term, look at the long term
I think somewhere the original purpose of the stock market is lost. It was supposed to be a platform where investors had access to buy part of businesses and companies gained access to capital. This has somehow devolved gradually by some into a betting game. Just because the stock market is so accessible and always on, it doesn’t mean we have to participate in it 24x7.
Moneycontrol reports that there is a sudden influx of new retail investors investing for the first time in the stock market. This is attributed to primarily increased time available at hand due to the COVID lockdowns. The article goes on to state that new investors are putting money into riskier instruments like options. The lure of higher returns combined with boredom doesn't seem like a great reason to start trading. It is investing not betting. Sign up bonuses from the trading platforms shouldn't be a reason to start trading.
Jeff Bezos had an interesting take on the stock market. During a particularly challenging time from a share price point of view for Amazon, there was mounting pessimism within the company. In a meeting, where he was met with this pessimism, he went up to the whiteboard and wrote: "I am not my stock price". He proceeded to say, "look, when the stock is up 30% in a month, don’t feel 30% smarter, because when it’s down 30% in a month, then you’re gonna have to feel 30% dumber, and it’s not gonna feel as good"
Do founders buy or sell their shares in their own company just because there is a market fluctuation? Why then when you buy a business or a piece of a business(a stock) should you think of buying/selling because there is a short term fluctuation? If you believe that the company you own will create value in the long term, there is no reason to act on the constant fluctuation in the stock market
What's your take on this matter? Let me know your views in the comments below