If you have any amount of money, small or large, invested in the stock market right now, then the title of this post will hit home right away.  One of the biggest benchmarks , the DOW Jones Industrial Average, is off quite a bit already this year.  That means that those who invested money on the January 1, 2008 would come out with less than they put in, if they were to sell right now.  Not too good for a few days.

That’s why you need to be calm, cool, and collected if you’re going to trust your money to the whims of the stock market.  There will be times of turmoil, when you lose money right off the bat.  There will be times when nothing seems to go well, and all your investments are losing money.  There will even be times when the market as a whole is gaining ground, but your investments are in the tank - it happens.  And it will happen, no matter what you do, no matter how bad you don’t want it to happen.   Whether you do all the home work you can and pick the stocks yourself, or if you leave it to the pro’s.  There will be times of volatility.  You will lose money in the short term. 

It’s extremely important to not let that bother.  Even if you see your investments tumble by 5, 10, or even 20% over a several day period - don’t panic.  The majority of investors are an extremely touchy bunch - and they jump at even the slightest concern that something may be off.  Your best bet is to relax and stick it out.  As a general rule, stocks trend upward over time, even given temporary dips.  That is, by no means guaranteed, but a general rule of thumb.  Don’t freak out and fuel the fire.  Stay put and stay the course - things will work out.

Plus, if you sell right after investments drop in value, you’ve just committed the ultimate investment sin - buying high and selling low.  That doesn’t sound like good math, now does it?

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