During market corrections, it’s natural to want to bail out and save your cash. It can be demoralising to keep buying stocks, only to have to sell them a day or two later.

But Tony always stresses that we should try to stay fully invested, because when the market turns back up, the majority of the growth comes in a handful of days, as this graph from Putnam demonstrates. Just missing out on the 10 best days over 15 years can cut your returns in more than 50%.

So we just follow the QAV rules, using our stop losses to get out when something is falling and our checklist to determine what to replace it with as soon as possible.

What? A free weekly investing newsletter? Oh yes please.

Every Monday we publish a newsletter with updates on our podcast and portfolio activity. Sign up now to get your copy completely free!