According to the Bank of Montreal, two thirds of Canadian investors have trouble keeping their emotions in control when it comes time to invest. Remember, when it comes to investing, letting your emotions overwhelm you can come back to bite you. First time investors are usually afraid to take the plunge. If you happen to be one of them, it’s best that you keep the following in mind before committing to anything –
The old adage “Don’t put all your eggs in one basket” rings true here. For example, if you are hesitant about investing in mutual stocks, go for index funds. The more diverse your portfolio is the better off your investments will be.
Fear has the tendency to make the most seasoned investors doubt themselves. You might end up panicking and selling because everyone else is. Analyzing your investment will make it less of a mystery. Take a step back and analyze your motives. Does selling your investment seem like a good idea? Maybe you should consider other options to solve your particular issue. It’s best that you reconsider if the only reason why you are afraid to sell is because things seem tough.