If you’ve saved a decent amount of money over the years, or recently found yourself with a windfall of cash, you may want to invest the money in the stock market. Where do you go from here?
To start, removing emotion from your investment approach can put you on a better path to reach your financial goals. You’ll also want a financial professional that’s committed to providing you with professional guidance along the path to reaching your goals.
Take Emotion Out of Investing
It can be an emotional venture to throw your hard-earned cash into the stock market and watch what happens to it. Allowing a financial professional or computer program to invest your money for you can be nerve-wracking, especially to those with concerns about day-to-day market volatility.
These thoughts are normal for first-time investors. When you work with a trusted financial professional, you’ll benefit from approaches to investing that help reassure you about how and where your money is being invested.
Here’s a typical investment scenario:
- For most clients, they feel confident when stocks do well and panicked when they don’t.
- Market low points can be an opportunity to make money, if clients stick to their guns. However, many feel defeated when markets dip and instead make a quick exit to avoid additional losses.
- Here’s the catch: historically, what goes up must come down, which means investment opportunities when the market rebounds.
Successful investing doesn’t mean chasing results or timing your entry or exit into the market. Please don’t hesitate to reach out if you’d like further guidance on the importance of long-term investing and how to resist emotional urges with your investing decisions.