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Old 12.01.2021, 22:18
besmegenis besmegenis is offline
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Join Date: May 2019
Location: CH
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besmegenis has made some interesting contributions
Re: How much you are able to invest in stock market?

I leave 1 month worth of expenses as cash and the rest goes to equities. If real emergency* hits, I don't care if timing is not perfect, I'll sell some and get cash back. Otherwise, it is accumulating and the more further I am away from day 0, market crash seems not that worrying.

Does it sound risky?

*New car is not emergency

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Of course. Understood. Please select option that reflects your current situation better and our top management will get back to you ASAP. (Sounds very Swiss )

P.S. For instance ... What level of Risk? Hell, I am very resilient and have no problem with it

On the serious note though, I agree that higher capital put in play on the market will result with higher gains in bull market but also higher losses in the bear market. Over the time though itís assumed that the stocks will increase their value.

What I meant though is, for a typical household you remove certain amount of disposable income that you may part with for certain or indefinite duration of time. So there is always the risk that you donít have access to it in unpredictable case of e.g. job loss, sudden unexpected expenses, pandemic, economic crash ... and whatever calamity occurs for that matter that will force you to use the money that initially were not planned.
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