Aargh! How do I deal with market frustration?

I put a bundle of money into mutual funds, just in time for the recent market nosedive. This was after sitting out for about four years, because I was afraid the post-2001 recovery was too fragile. It's long-term money, so I know I should just let it sit, but how can I deal with the frustration of losing money every day?

Josh, shut up.

If you put money in mutual fund, why not let's the fund manager worry for you. Fact, a good funds alway recover from a correction such as this one. Just let it sit and give it some time. The reasons of markets volatile were the worry about the feds raising short term interest rate, and the geopolitical in Iran nucleus showdown. I strongly believed it just a short term.

i think you might need to go sit on the toilet and rid all the bad from your body.

Build yourself a "fake" portfolio online--- I use msn.com because I can load all the stocks I want into it and track them but never really buy them. Put all the "dog" stocks in your fake portfolio. Risky sectors, overinflated companies. Then watch it tank. As your mutual funds lose 5-10% (or even more) it will feel less painful when you compare it to your dogs which will lose 40% or more... or even compare it to mutual funds that are doing worse.

If you've got the money, you could even buy more of the same mutual fund; buying at a lower price will give you a better chance to earn some of those losses back and at least break even. That's called dollar cost averaging. Once you break even, you can decide if you want to stay in that fund or shop around. I did that with a telcom stock a few years back... bought in at $11/share, watched it slide, started buying when it hit a pitiful $.33/share, and bought enough to break even as it rose to about $.55... held onto it a bit... and it surprised me by rising to about $$7.00. Awful if you base it on my original $11 but not too shabby based on my average price of about $1.90!

It's a weird time in stocks and funds right now and it's not going to get any better...

I think maybe you have just learned a valuable lesson. Do not put all of your money into the market at once. It is much better to always keep a cash reserve and to invest just a portion at a time. Say 10% during each couple of months and once the market has has a good run begin pulling some of your money out of the market, again maybe 10% every couple of months. But make certain that you always have at least at 15%-25% cash reserve and not more than about 70%-80% cash reserve.

Remember. Buy low. Sell high. Trite but true.

Now for dealing with the frustration. I hate to recommend this but you might try liquidation about 10% to 35% of your holdings depending on your current cash reserve. The market has all the appearance of becoming a bear market. It is currently nearly 300 points below the 50 day moving average and approaching the 200 day moving average. It broke below the 200 day ma in October but recovered. It may not this time. The $ is dropping. Interest rates are rising. Congress has lost complete touch with reality as has the president.

If three or four good huricanes make landfall in the U S in populated areas, everyone may go beserk like they did last year.

I disagree that one needs to lose money, but mutual fund BEARX RPIBX and GOLDX, 15% each and you will do just fine. If any of three drop more than 10%, buy 5% more. Buy stocks
NAK, EZM and TRP, you will be rewarded awesomely.

Dollar cost average if the market goes down. Think of it as buying funds "on sale."