First time investor, started putting money into funds (index) June 2014 and trying to create a portfolio and averaging into the market, and indeed learning as I go. Have discovered that I am my worst enemy, but haven't been excessively burnt yet.
I have an index fund, which I for whatever reason chose to overbuy instead of following my allocation plan. (OK Reason: First bought at all time high, then when it fell quite a lot, decided to put twice the amount in at that level to "cover losses").
I put in a fixed amount every second week according to the balance between the various index funds. Now since I've overbought on that fund I won't be able to put money in it for another 2 months. In the meantime the fund is now priced so my gains on that fund is exactly 0.
Question, do you think I should bother about selling the excess so that it can partake in the balance as I continue averaging into the market?
I realize 2 months is not long, but this index has been extremely volatile (OSEBX). Two 20% percent drops with almost full recovery in the last 3 months only.
This is a not a big part of my portfolio at 9%, but money is money :)
Any suggestions much appreciated.