As we all know, the stock market is very volatile. The stock prices can go up and down dramatically affecting not only your net worth but your state of mind as well. It is generally recommended to be invested in stocks for at least 5 years, as the long term trend of the stock market should be upwards. However, how do you tackle the volatility of the stock market while waiting?
1. Do Not Invest Money You Cannot Afford To Lose
When you invest, you always have to invest with your financial goals in mind. For example, If you are close to 30 and you are planning to get married and saving to buy a house. don’t invest the money which you are saving towards buying a house into equities! If you have no immediate needs such as buying a house or having children, you can safely put more money ......