Every investor's best strategy is index funds. Fear is your worst enemy in investing in the stock market. Fear is designed to keep us alive. If you are in the wild and see a lion, you will feel scared, and will automatically switch to full survival mode by running even faster than Usain Bolt to safety.I'm not asking you not to be afraid, because the only person who isn't afraid is a psychopath.but what I'm asking is that you have to overcome your fear of losing money.
The stock market collapse will definitely happen, remember? When that happens and you see your portfolio go down 35% in a few months, your brain will return to full survival mode and your first reaction is to sell your shares to save whatever is left and stop the pain!
And if you do, you are effectively losing more money and causing more pain!
Instead, I want you to make peace with the "feeling" of seeing a sudden decline in your portfolio, you need to understand those feelings, accept the agreement and keep on going.by doing this, when the stock market crash occurs, you will know that it is only a temporary thing, that in the end your shares will go up and don't let fear take your control.you need to stay calm, don't panic, stay away from your computer / smartphone, go out to enjoy life, and patiently wait for your stock to go up!
Fear is your worst adviser on the stock market, so if you feel angry / depressed / anxious or having a bad day, don't make any decisions, logout from your broker's application and wait until you feel better.I only make investment decisions when the market closes, in this way I avoid my emotions controlling my decisions.
Good broker fees when buying and selling a stock are subjects which in my opinion are not sufficiently discussed today. This is why investing, buying and holding shares / funds for the long term is more profitable than trading stocks.even if you have successfully traded; the money you have to pay the broker effectively will reduce your investment performance!
Index Fund is your best friend!
We all want to be great investors who always beat the market, but in reality, defeating the market requires time, dedication, lots of research and lots of luck.I don't claim that you can't beat the market, I defeated the market six times in 2018 (in June 2018) and it's not because I'm a magical stock market wizard, but because of my research, strategy and help, Miss Luck I managed to achieve that goal.
The problem is, SP500, which is an index that tracks the performance of the 500 largest companies in America, is the gold standard for market performance, and several studies conclude that the best strategy for every investor is to have an Index Fund, this way you will capture the entire performance of the stock market! And you do this by doing nothing! You just buy an Index, sit down, relax and just forget it.
I encourage every investor to have an Index Mutual Fund or ETF such as the SRI-KEHATI Premier ETF Mutual Fund, IDX30 Premier ETF Mutual Funds and so on to increase diversification and reduce the volatility of your investment.I personally own 20% Mutual Fund Index, the rest I have in Growth Stocks and Dividend Shares.