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Fears and anxieties tend to impact the way you think about your finances.
Jaspreet Singh, host of The Minority Mindset, has some great insights about overcoming stock market anxiety.
In a recentYouTube video, he offered his best tips for reluctant investors to overcome their worries.
As Singh put it: Crazy happens.
The Dow rises one day and then plummets the next.
Individual stocks soar and fall unpredictably.
The stocks value later rose again to $521.
The markets dramatic ups and downs can be, well, scary.
This is an error, but its a common one.
Instead of dumping stocks, hold on and wait through the downturn.
Experienced investors know how to take the long view.
Smart investors know to hold on patiently through dips and crashes instead of selling off shares at a loss.
The takeaway:It takestime and patienceto build wealth.
Ignore daily market fluctuations, which usually level out over time.
Take the long view, considering stock performance over the years, so you can maximize your profits.
So, what does Singh believe investors should do?
A dip in the market is a great opportunity to buy up stocks.
Think of a downturn as a time when shares are on sale.
Many experts, including Warren Buffett, give similar advice.
Buffett once said, Bad news is an investors best friend.
It lets you buy a slice of Americas future at a marked-down price.
The takeaway:Sometimes, what looks like bad news turns out to be an opportunity in disguise.
Dont be fooled by the doom-and-gloom headlines about the stock market: Dips are an excellent time to invest.
Choose the Right Investment Strategy
There are many different approaches to investing in the stock market.
Singh recommended building an approach that lets you play to your strengths.
How much time do you have to research individual companies and investment prospects?
How high is your risk tolerance?
Investing in individual companies is a high-risk, high-return strategy.
The index is often seen as an indicator of theU.S.
It also saves investors the time and stress they might otherwise be spending researching individual stocks.
The takeaway:Be realistic about your financial knowledge and capabilities.
For the typical investor, an index fund like the S&P 500 is the best approach.
Singh advised people to understand that when you invest, you are parting ways with your money for years.
Thats why you should never invest money that you might need to cover your living expenses.
Many investment firms allow customers to set up an automatic investing strategy that allocates afixed monthly sumto invest.
The takeaway:Investing in the stock market is a long-term strategy to build wealth.
Dont think of it as a get-rich-quick scheme, because then youll be vulnerable to market fluctuations.
Be patient and take the long view.
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