Don't invest your money all at once. Make constant purchases

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Avatar for EdiCtedd
1 year ago

Hello people, I would like to write this text for people who invest money in stocks

A lot of people get into the stock market completely wrong. They set aside money to invest and buy everything at once. Then they wait to see what will happen and hope that prices rise. He's more a fan than an investor. This is totally wrong and can lead to losses that may never be recoverable. Investing in stocks should be an ongoing process, with a certain frequency. Never all at once. But, why?

When you invest all at once, you run the serious risk of having bought at high prices, which then fall and take a long time to recover (and recover). In addition to the psychological pressure of seeing all your invested money “melting”. This, for sure, will make you sell at a great loss because you can't take it anymore.

Even if you received a hefty sum at once and want to invest that amount in stocks, put that amount in fixed income and buy little by little, every month. Divide into 18, 24 months (ideally even longer) and with that, you'll buy at different prices.

I know who the anxiety of investing a high value is soon great, but the market is not the place to cure anxiety. In fact, it can get worse, a lot. Because if you invest everything at once, the tension with any "fall" will be huge. When you make periodic contributions, you start with less money, which lessens the tension. In addition to buying at different prices and even when you fall you will be investing. It also helps to diversify, as you have more time to study and choose more and better companies. And there is still time to get used to market fluctuations. The benefits are numerous. Therefore, try to invest in stocks periodically and constantly. This can avoid irreversible losses.

I hope you enjoyed the text.
Good afternoon!!

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Avatar for EdiCtedd
1 year ago

Comments

This is really a good tactics to investing, so as to avoid heartattack and debt.

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1 year ago