2. Remain steady through market changes (good and bad)
Now that you understand how stocks can benefit you, lets address the elephant in the room. When the market is bad, majority of shortsighted and uninformed people panic. I want you to reread that sentence you just read. History, which translates to facts, show that if the stock market behave as it has over long periods of time, then your portfolio should be better off. These losses are just on paper unless you are selling your investments (this is a wrong move to make). It is important to understand that stocks are long-term investments. Do not let short-term volatility destroy your long-term success. Pay attention because here is where the savvy investor makes his bread and butter. If you save regularly and invest when the market is down (lets consider the market shows long-term growth that is shown historically), your savings will increase during the time when the market is down because now you are buying stocks when they are priced low. When the market swings upward, booyah, you are now in a better position then before.
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