The Fear on Friday
The DAX fell around 4% this week. Anyone checking their portfolio with €10,000 in an ETF sees -€400. It looks bad. Calls are being made. Emails arrive: "Should we sell?"
I know this feeling. In 2000, I was there myself — Telekom from a hundred down to eight euros. I thought: "This will never recover." Then I sold. And that was exactly the mistake.
Here's the Secret
A market loss is a loss on paper. Not in your real wallet. You lose real money only if you SELL RIGHT NOW. As long as you hold, it's just a number that could change again tomorrow.
The DAX was at 26,600 points. This week it's at 25,300. That's a decline. But the DAX was at 8,500 in 2020. Anyone who didn't sell back then is seeing +200% today. That's why we talk about patience.
Why the Pros Stay Calm
Why don't big funds sell when the market falls? Because they know: a crash is not the end. It's an opportunity. If you have €10,000 and the market falls 20%, suddenly you have €8,000. But your monthly savings now buys 25% more shares. That means: the deeper the crash, the richer you get if you hold on.
My wife Sabine always says: "Daniel, if it hurts, you're doing it right." She's correct. Pain is a signal not to panic.
What This Means for YOU
If you have €10,000 in a DAX ETF and it falls 4%, that's €400 on paper. BUT:
- You still have the money. It's not gone.
- Tomorrow it could be €350 or €100 or maybe no loss at all.
- Anyone who BUYS now (adds money) will have the best returns in 5 years.
That's exactly why patience matters. Not fear. Not action. Just: hold on.
First Steps for Beginners
If you're just starting and the market falls: that's NORMAL. It happens every few years. And every time beginners panic-sell, patient people make real money. Your weapon against fear isn't information — it's time. Buy a broad ETF (like MSCI All-World), set up a monthly savings plan (like €200/month), and don't check it constantly. After 10 years, you'll understand why it works.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Past performance is not indicative of future results.