We live all having a pretty hard time on the stock market. Anyone reading this might feel like selling all and running away, however, think again.
I am in the red myself and have been for a while now...
It has not been a joyful scene to check my Trading212 account. Trying to block all negative news but in the end, I also need to catch up with them somehow.
What I did so far was to check the companies I believed in, kept their stocks, and even bought more of these companies. In the end, I aim to generate a dividend income and I have been doing just this.
My portfolio was generating £10 a month and now it generates around £50 per month. My secret formula is selecting my dividend payers properly and investing in them with a steady dollar-cost averaging strategy. As long as your companies have strong foundations, this storm too shall pass.
What you want to do is figure out what companies you believe in and invest in them for the long term. You can use a dollar-cost averaging strategy to invest in these companies gradually over time.
One important thing to remember is that you shouldn't try to time the market. It's impossible to predict when the market will go up or down, so you're better off just investing for the long term and letting your investments ride through the ups and downs.
Another thing to remember is that you shouldn't invest more than you can afford to lose. The stock market is risky, and you could lose all of your investments. So only invest an amount that you're comfortable with losing.
Finally, keep calm when the markets are going down as long as you have analysed your companies and you trust their financials. It's normal for the markets to go up and down, and they will eventually recover. So don't panic and sell all of your investments when the markets are going down. Just hold on to your investments and ride out the storm.
The key thing to remember is that you haven't lost money until you sell your shares at a loss. So if you hold on to your shares, they may eventually recover and you'll end up making a profit. So don't panic and sell all of your investments when the markets are going down. Just hold on to your investments and ride out the storm.
This market crash too shall pass. And when it does, those who held on to their investments will be rewarded for their patience. So if you're in it for the long haul, just hold on to your investments and ride out the storm.
Stay calm and invest for the long term!