Co-worker: Did you see the market today and yesterday? It's crazy.
FLG: I find it fascinating.
Co-worker: Fascinating. I'm scared out of my mind. I've sold some stock in my 401k and I am thinking about selling more. I want out of the market.
FLG: Do you know the simple rule of stock market investing?
Co-worker: No. What is it?
FLG: Buy low, sell high.
Co-worker: Oh, that rule! Of course I've heard that.
FLG: You just sold some stock.
Co-worker: Yes, and I might sell some more.
FLG: You bought high and sold low.
Co-worker: But the stocks keep on falling.
FLG: Did you buy at a price higher than you sold?
FLG: Bought high, sold low.
Co-worker: But not as low as today. My account hasn't lost as much as your probably because I got out.
FLG: Perhaps, but that doesn't matter.
Co-worker: Doesn't matter?
FLG: I bought, but haven't sold. So, I haven't bought high and sold low.
Co-worker: But the market could keep falling. Who knows what will happen in the next couple of weeks? Do you know?
FLG: No, I don't know.
Co-worker: See. You should sell.
FLG: I don't know what will happen in the next couple of weeks, but I am pretty damn confident that the market will be higher in thirty or forty years from now when I need that money. So, I don't care about the next couple of weeks.
Co-worker: I saw a guy on TV the other morning saying that nobody should put any money into the stock market that they will need within the next five years. That's crazy.
FLG: No, that's normal, everyday advice. You need it in less than that you buy a CD or something. You don't put it in the stock market.
Co-worker: I didn't know that.
FLG: That's how you end up buying hi and selling low.
Co-worker: I don't want to do that.
FLG: You already did.
Co-worker: What should I do now?
FLG: Start buying.
Co-worker: I'm gonna wait 'till the market starts going up again.
FLG: I see.