6 Tips to help you overcome your fear of investing.
● Start small. Determine the amount you feel comfortable investing and choose a goal that is appropriate to where you are right now – and where you want to be. You can revise your plan as your investment goals change over time.
● Educate yourself on how different investment options work and how they’re likely to behave. If you don’t understand an investment, don’t buy it.
● Set expectations. Consider your risk tolerance, and understand the risks and rewards associated with an investment.
● Pay attention, but don’t get obsessed. It’s likely your investment won’t change much from day to day or even month to month. But even if it does…
● Try not to let volatility scare you. It’s normal for market cycles to fluctuate and there is no one-size-fits-all approach. Individual time horizons differ and may not align with market cycles, but it’s important to remember that time in the market is more important than timing the market.
● Avoid moving your money around every time there’s a change in the market. This makes it more likely you will end up buying when prices are high and selling when your investment is worth less. Remember that any loss is only on paper – until you sell.
