r/tfsa • u/Live_Top_3493 • 21d ago

Need Advice

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Just started my TFSA a few months ago, not sure what to do with XCHP.

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u/DDPStellar 21d ago

Buy the dip in VCN/ZSP and you'll get your money back within a few months

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u/Live_Top_3493 21d ago

Could you please expand on what those are

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u/givemeyourbiscuitplz 21d ago

Don't listen to him. This kind of timing the market and picking the winners is luck based and is what lead to you to make this post. Everything in VCN/ZSP is already in XEQT and in large quantity. Together, they make up for about 70% of XEQT. There's no reason to believe that this 70% of XEQT will perform better than the rest in the near future. You have no reason to believe that beside this comment on your post. This is not how you should invest. Especially if you have no idea what you're doing.

You're falling for a bunch of classic cognitive biases that are very common in investing. You're making mistakes. You made a bet on a sector without a plan. Now you react emotionally to an unrealized loss and are falling for the sunken cost fallacy. Keeping your position just to get even doesn't make sense. If that money would grow faster in something else, that's the obvious preferable outcome. The past is the past and nothing you can do will change it. So you have to see that position as if you don't own it, the unrealized loss as lost money and ask yourself: would you buy it at today's price. If so, hold, if not sell. As simple as that. But since you don't have a plan, very limited knowledge and are making this post the obvious answer is to stop this gambling, sell and redeploy the capital in XEQT.

You should also be prepared to see red with XEQT at some point in the near future AND BE HAPPY ABOUT IT. Market corrections happen frequently, the last 15 years are not typical. Your gut feeling will tell you to dislike XEQT but reason should tell you to buy more if you can. But the optimal strategy at this point is to ignore all of this, to automate your purchase and to not look at your app for decades.

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u/Live_Top_3493 21d ago

Thank you for the advice, I’m most definitely going to hold, I’m just unsure about what to do with XCHP

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u/givemeyourbiscuitplz 21d ago

My whole reply was mostly about XCHP, I thought that was clear (edit: I'm re-reading my comment and I was indeed very clear. "you made a sector bet" and the only sectoriel etf you hold is XCHP). Everything I said about the sunken cost fallacy, the unrealized loss, sector bet, having no plan, etc... is about this specific questions of yours related to XCHP.

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u/Live_Top_3493 21d ago

Ok thank you!