The Hardest Part About Investing Is Doing Nothing
When you invest your money, it’s easy to get inspired and start checking it out every day to see how much they are making. This is not a good idea, and it may end up hurting you. The best and most difficult thing is to do nothing with your investment.
As personal finance writer Chris Reining explains, financial markets are incredibly difficult to predict, even for seasoned veterans. It’s easy to look at a recession for days or even months as a drop from which you will never return. However, this is rarely the case with a properly diversified portfolio. Thus, the most important part of investing is not to panic:
However, in the short term, you don’t always make money from investing. This is why it can be scary. I lost a lot during the recession. In nine months, my portfolio grew from $ 175,000 to $ 120,000, and I thought, “I should have sold everything when I had the opportunity.”
But I knew that in the long run, the market is always going up. As misleading as it may seem, I kept investing and in hindsight it is difficult to determine where the recession was.
If you sit back and do nothing while your portfolio loses value, you won’t lose that money until you sell your investment. Sit quietly and ride out the storm and your investment will usually pay off again. Especially if you’ve invested in a solid index or ETF fund . This is not to say there is never a good time to sell, but if you are concerned, talk to a financial advisor rather than reading the daily stock ticker.
Mistakes People Make When Investing | Chris Reining