February 16, 2018

Stay cool despite the mania

As soon as you have bought your first stock, you will probably feel the urge to monitor its course so you can get out as quickly as possible if it falls. Our advice is: don’t do it. This applies to both. Don’t monitor the course and don’t react to it.

Even though this completely goes against human nature, it is the only way to succeed in stock investing. After all, this isn’t about human nature, but the nature of the stock market. The market can crash, and does so on a regular basis, but it always recovers from it. The best strategy, therefore, is to buy stocks and hold them – no matter what happens.

This approach might not generate extremely high returns, but over the course of a few years, you can expect a steady 5 to 10 percent. This is much better than any savings account a bank could offer you.

The important thing is therefore to resist the urge to get out once the prices fall. Doing so will harm your returns and also your nerves.

In our video, you can see how new stock investor Michael Stadler from Osteopathy Central decides to buy stocks with a long-term strategy and to hold them for many years. He’s not interested in realizing short-term profits, but rather to be invested for a long time. And above all: to keep his mind free for other things.

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