Investing can be scary, and witnessing markets go up and down causes anxiety in most. It is impossible to plan with complete certainty, which can leave you feeling stressed. It’s also important to remember that this stress can lead to irrational choices, which could ultimately lose you money. If you want to be a successful investor, it’s important to manage the stress and keep it in control. Here are a few tips to help.
Don’t believe everything you hear
Markets can fall in the blink of an eye, and media outlets can react quickly to the story, sometimes simply scaremongering. This can cause fear and stress, and some people choose to sell to avoid what they fear could be further losses. Although markets can then rise again the next day, meaning as an investor who sold, you’ve missed potential growth.
Our advice is to take everything the media says with a pinch of salt. Only follow or listen to reliable sources of news, and do your research and figures before making rash decisions.
Things change rapidly. It’s normal
If you have access to your investments online or via an app, try not to view them too often. Of course, it’s tempting, although it can ruin your investment journey long-term. If you monitor your success too regularly, you may start to worry about minor daily fluctuations, again leading to unnecessary stress.
Limiting the number of times you view your investment performance is a good idea. Of course, it is important to check. But instead of daily or even weekly, why not limit yourself to once a month? Remember, investing is a long-term journey.
Consider your level of risk
Investing always has an element of risk. Returns are never guaranteed, and there is a chance you could end up with less than you started with. But there are ways to reduce investment risk.
This can be done by only investing what you could afford to lose and spreading your money across many investments – this is called diversifying your portfolio. By doing this, the odds of losing any of your hard-earned money decreases.
Think further ahead
If your investment journey stresses you out, focus more on your longer-term goals. Why did you start your investment journey in the first place? Don’t lose sight of the bigger picture.
Use an expert to ease the stress of investing
Still, finding investing stressful? Consider finding a trusted investment expert. Experts sweat the details while you sit back with confidence in the growth of your wealth.
GSB Capital can help you pick your investments, monitor the news, analyse market data, and, if necessary, make changes to keep it on track with your desired risk level. By trusting an expert, you can de-stress in whatever way you choose, with peace of mind your investments are in good hands. Contact our team today to start your investment journey.
Please remember that the value of your investments can go down and rise, and you could get back less than you have invested.
Ross Whatnall is CEO and co-founder of GSB and a highly experienced private client director. Ross holds many insurance and investment management qualifications, including CISI, CII, LIBF and CFA. He started his career in private banking with HSBC in the UK before moving to the UAE in 2013 to focus on serving his private clients.