Are you finding it hard not to worry about your stocks? Even experienced investors tremble when the market goes crazy. Here’s what you can do now to minimize your worries:
Ignore the news.
Avoid the “hot” tips that you hear from friends or read about on the internet. If a “regular person” hears a tip, it’s either too late to make an easy profit or it might be a scam.
Inexperienced investors who invest significant amounts of money into the market are more likely to sell at the first sign of volatility. The only guarantee in the stock market is that you can be sure that there will be good and bad days. If you are shaken when your stocks’ value decreases, you may sell at the wrong time, and lock in a loss. Get used to the market by starting with small amounts of money, and increase it as your comfort with volatility increases. If you still can’t stand the ups and downs, consider more conservative investments.
Get the right type of advice.
Since there is no “one way” to buy stocks, find the path that fits your personality best. If you enjoy research, watching the market, and trading, consider handling the portfolio on your own (as long as you can accept the associated risk). On the other hand, if you want to have a professional take care of your investments, you can choose from many different types of advisors: financial planners, stockbrokers, mutual fund salesman, and more.
If you’re not sure which type of service you need and don’t want to worry about your stocks, begin by meeting with a financial planner who will ask you a lot of questions about your situation before offering advice. He will try to understand your needs, goals, and risk tolerance before he begins suggesting any investment planning.
Feel free to call my office if you want help choosing an advisor or investments (02-624-2788).
Douglas Goldstein, CFP®, is the Director of Profile Investment Service, Ltd., which specializes in helping people who live in Israel with their US dollar assets and American investment and retirement accounts. He helps olim meet their financial goals through asset allocation, financial planning, and using money managers.
Published August 31, 2018.