Začínáme s investováním
What to Do When Your First Investment Falls
Key takeaways
- A falling investment is a normal part of investing — no market only goes up.
- Selling during a drop turns a paper loss into a real one and robs you of the future recovery.
- During a drop the best strategy is to continue regular buying — you're buying cheaper.
- History shows that diversified equity indices recovered from all major crashes — though it took years.
If your investment has fallen, you have two options: sell and lock in the loss, or hold on and let the market work.
Why a drop is not a catastrophe
Markets fluctuate — that is their natural property, not a malfunction. The global equity index has experienced dozens of drops of 10, 20 and even 50 % over the past 100 years. And it recovered every time and reached new highs. The drop you see right now is just a point on a long journey. You can see historical context in the projections on the projections page.
What happens if you sell
Selling during a drop is the most common beginner's mistake. That turns a paper loss (the value fell, but you didn't sell) into a real loss (you sold at a lower price than you bought). You also miss the recovery — and that tends to be fast and strong. Those who sold in March 2020 missed the strongest rally in 20 years, which came just weeks later.
So what should you do
- Do nothing — don't sell, don't panic, don't stop regular buying.
- Continue DCA — you are now buying cheaper than last month. Your average purchase price falls. See DCA — dollar cost averaging.
- Check your horizon — are you investing for 10, 20, 30 years? Today's drop won't be visible on the chart in 10 years.
- Don't compare with your purchase price — you can't influence that. What matters is what happens in 15 years.
When it is right to sell even during a drop
If you urgently need money — for medical treatment, an unplanned expense — you sell and lock in the loss. That's why having an emergency reserve in the bank is recommended, and investing only money you genuinely don't need for 5+ years.
FAQ
How do I know if a drop isn't the start of a permanent collapse?
A permanent collapse of a diversified global index would mean a permanent collapse of the entire global economy. That has never happened in history. Individual companies or sectors disappear, but the index renews itself by adding new companies.
Should I buy more in one go during a drop?
If you have spare cash and steady nerves, yes — you're buying at a discount. But only if your emergency reserve is untouched and you're investing over a sufficiently long horizon. Never borrow money for this.
How long does it take for the market to recover from a crash?
It depends on the depth of the crash. A minor drop (10 %) can be erased in weeks. A major crisis (2008–2009) took 4–5 years to recover. That's why we recommend investing only money you won't need for at least 5–10 years.