Human emotions (Fear and greed) are inevitably involved when it comes to investing. I have made losses in the past due to succumbing to my emotions. To avoid such mistakes, I have learnt to adopt 3 strategies now: 1) Invest in what I strongly believe in, 2) Dollar Cost Averaging (DCA) & 3) Diversification. 1) Doing research and homework to fully understand the business before investing in it. Even during bearish periods, I will remind myself the reason I have invested in the first place. This stops me from selling out of fear and taught me to be patient and hold by looking at Long term or even to pump in more during dips till I finally see the fruits of my investment. Exception applies if fundamentals have changed pre and post investing and this is when stop loss decision needs to be made if required. 2) DCA: I have registered for Regular Savings Plan (RSP) for my funds which allow me to buy at fixed monthly intervals. This basically helps to tide though any fluctuations and even out the investment entry price over time. No one can always be perfect in catching the bottom. 3) Diversification is what we always term as putting eggs in different baskets. This helps to reduce volatility in my investment portfolio and thus lower any anxiety levels that may arise, allowing myself to make more informed decisions without succumbing to my emotions.
$Vanguard S&P 500 ETF (VOO.US)$
$Ford Motor (F.US)$
$Apple (AAPL.US)$
$Tesla (TSLA.US)$
$Vanguard S&P 500 ETF (VOO.US)$
$Ford Motor (F.US)$
$Apple (AAPL.US)$
$Tesla (TSLA.US)$
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