If you’re a passionate investor you’ve certainly been on the roller coaster ride that stocks took us on in 2018. If there’s any lesson to take from that ride, it is that nothing is certain – except that markets will continue to go up and down this year, too. Of course, this has made many people anxious and uncertain if they should stick with their portfolios. But if you wish to get more out of investing in 2019, you need to do quite the opposite from backing out.
These market fluctuations are not supposed to have a big impact on your investing strategy if you’re an everyday investor. In other words, this day-to-day movement of the markets is not expected to have lasting consequences to your portfolio if you’re investing for the long term (your goals being at least five years out). If you’re surprised by this statement, get ready for some unexpected effective ways to get more out of investing in 2019.
Switch From Emotions to Automatic
Everything smells of a stock correction, maybe even a sustained downturn. That’s quite normal after the stocks have been gaining ground for more than ten years. But nobody can say when it will happen, nor how long it is going to last. Maybe it’s already happening – nothing is sure. But even if this transition leads us to bear market, is panicking going to do us any good? As an investor, you probably know that you can’t let your emotions influence your money decisions – that’s how mistakes are born. So why start doing it now? Fear and panic are the most poisonous of them all. You should subdue them and keep going. The trick is in being able to contribute without having to regularly check what the market is doing, so the way to go is to set up automatic deposits into your investment accounts. We all know the famous saying of Baron Rothschild – time to buy is when there’s blood in the streets. So if you continue to invest on a recurring basis, let’s say every time you receive a paycheck, it’s your best shot at ensuring you’ll be able to buy stocks at the very bottom of the market – when they’re cheapest, that is.
Regain Control – by Realizing You Already Have it
Although this sounds a bit philosophical, it’s entirely simple and all the way true. What is the key to success if you’re investing long term – to invest as much as you can and to keep it up over the longest period of time. So, while others are saying to ʽbe more cautiousʼ and to ʽtake less riskʼ, we say – invest even more in 2019. If we sound too bold, that’s because we’re aware that short-term movements of the markets are beyond our control, but we’re also aware that the amount we’re able to stash away is an independent factor which is completely within our control. Once you think about it you’ll realize it’s entirely true, no matter how philosophical it sounds in our subheading. And that is precisely why you should ceaselessly aim to boost your investments by increasing your contribution. And you don’t have to wait for a raise – there are windfalls such as tax return or bonuses which can be allocated to your investments.
Diversity as Protection
After the two ways above we claim to be effective, you’re probably very eager to hear how you can protect yourself. And yes – the best way of protection against the ups and downs in the market lies in diversity. Which means that you need to have money in more than one type of investment. Maybe you’re already into bonds and stocks, but have you consider going for the Pink Diamond Investment? If you haven’t, consider it. Consider everything you haven’t already considered. Include in your portfolio a mix of stocks in small and big companies, a mix of U.S.-based ones and international ones. Mutual funds let you own a small amount of many bonds and/or stocks simultaneously, so it’s the easiest way to achieve this mix of investments. A capable financial planner should be able to get the right asset allocation for you based on risk tolerance and your age, or you can simply use one of the online investment calculators which are free to use and will help you to get a ballpark idea. You could also consider a target-date fund which will automatically allocate the investments for you if you’re more of a hands-off investor.
Build Confidence by Making The Investments Fun
It is obvious that this game is not for people without confidence. It is also clear that unstable markets have shattered that confidence amongst many. But sometimes all it takes to boost that confidence again is some extra cash. If you thought you’re out of the game, investing again will simultaneously be an investment in your confidence. Getting back in the game doesn’t require much – you can simply pick and buy one stock, then watch what’s happening to it over the coming year. It’s important to be there – chart the ups and the downs, start reading the news on the company. You won’t be able to deny you’ll be having some fun. Today people are running away from high stakes because they’ve lost their confidence, but improving your confidence as an investor can be done only by having a real stake at the table. In order to get out from this enchanted circle, all you need to do is to make an initial effort to just get in there. It’s the only way to realize it’s not at all intimidating as it looks. While you watch that one stock of yours as the market moves the fun of it will slowly grow into motivation and then it’s time to read this article again from the top.
You can’t get more out of investing if you don’t invest more. The unstable market situation has flooded the internet with countless articles which offer ʽbest investmentsʼ in these ʽtimes of crysisʼ, but they’re all just cheap tricks that won’t produce any long term results. So the best way to invest is to keep your emotions in control and money flowing, protecting yourself with diversity. If you’ve lost your confidence taking the risk is the only way to get it back.