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Stocks return about 10% per year, on average.
But when stocks do go down, it can be nerve-wracking for investors.
Here are three tips, recommended by these money experts, to weather a stock market storm.
Also seefive things you should consider before making an investment.
Diversifying
You may have heard that theres no such thing as a free lunch.
By this, he meant that diversification can help increase your long-term returns while decreasing your risk.
To diversify your stock portfolio, you should own stocks from different types of companies to avoid concentration risk.
It essentially means periodically investing a consistent amount of money.
That way, the total amount of money you invest isnt as affected by marketing timing.
It allows you to avoid the risk of the market falling significantly right after you invest abig lump sum.
Simply set aside some money every month and check that that money is invested in the stock market.
Does that sound like something you have much influence over?
Fortunately, you could control your decisions about investing.
At the end of the day, any individual stock price is going to be a moving target.
A professional can also connect you with trusted brands, retirement products and retirement services.
Ultimately, stock market fluctuations shouldnt drive your decisions.
Dips are a normal part of investing.
And as Julien and Kiersten Saunders say, you must know the difference betweenmistakes and market cycles.
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