The stock market dropped 2% today. Is it time to panic? Probably, but other than panicking, what do you think you can do? Go ahead and sell all your equities. What you’ll pay in fees getting out, and then back into them when a cooler head prevails, will be far higher than any loss you think you’re offsetting.

The first question is, what do you own that you would sell? Let’s say you’ve been stock picking, and you’re going to “take profit” because that’s what you’ve heard the stuffed shirts on TV say people are doing.

“The market was down today, as profit takers engaged in a wide selloff.”

– Every dude in a jacket and tie, every day the market is down

The reality, from a wide view, is that you and I shouldn’t be regularly buying and selling equities.

http://www.ifa.com/12steps/step3/

Read that, and repeat after me, “Playing craps is way more fun than throwing darts at stocks, and probably more lucrative.”

If our best investing behavior is to not try to buy and sell stocks like a billionaire playing with other people’s money, then why look at the index on any particular day? It’s become a pastime, like movie gross is for all of the people who don’t like movies, but do like gossip magazines and really beautiful people.

Whether the stock index goes up or down tomorrow should be pretty irrelevant to you. The best money bet is to be in index funds, and ride them. Put into them what is reasonable for you, and stay away from watching the ticker every day. You’ll live a better life for it.

Do I stock pick, you ask?

Heck yeah, I’m smarter than everyone, plus, I’ve got a fool-proof system.