Oh wow!!! I am just loving Sydney- it is an incredible city. Tomorrow we join the ship! Internet may be very sketchy, so will see you when I can! Lots of love, Nick Xxx
Ok, well that's not completely true, there are many people who do, but it's funny what a myriad of prescribed ways there are to deal with it- literally!
Some people advise (well most people) that you would generally be better holding your equities for long periods of time, 5-10 years+ to level out the fluctuations. Others say it would be best to check them regularly- for example, every 6 months, just to see how they are doing compared to the market in general.
One chunk of research I read said that after some psychological research, it's in fact highly recommended to buy a good diverse mix of shares and then don't check them for decades- don't read another business article or anything like that! The reason for this is that they found people were more risk averse when they saw frequent losses (which can be common in the financial markets). However as the stock exchange generally does provide the best gains, especially compared to government bonds and gilts (which are more stable but with lower returns), they said it is worth putting your money in the riskier shares market because your returns would be far better. But with the frequent downs, it puts people off and so they would tend to invest less.
So as with all things, it's 6 of one and half a dozen of the other. There are tons of people out there giving you diametrical opposed advices. What you have to do is sift and sort and work out what systems work for you!
You have to be brave enough to make your own mistakes. When I did a finance course ages ago, they said don't copy anyone else, it's not the same, whether you're right or wrong, you need to be making your own choices. It just makes more emotional sense! So just get out there and work out your own way of doing it.
Enjoy it all!!
Happy share-ing!!!
Lots of love, Nick Xxx
Ok, well that's not completely true, there are many people who do, but it's funny what a myriad of prescribed ways there are to deal with it- literally!
Some people advise (well most people) that you would generally be better holding your equities for long periods of time, 5-10 years+ to level out the fluctuations. Others say it would be best to check them regularly- for example, every 6 months, just to see how they are doing compared to the market in general.
One chunk of research I read said that after some psychological research, it's in fact highly recommended to buy a good diverse mix of shares and then don't check them for decades- don't read another business article or anything like that! The reason for this is that they found people were more risk averse when they saw frequent losses (which can be common in the financial markets). However as the stock exchange generally does provide the best gains, especially compared to government bonds and gilts (which are more stable but with lower returns), they said it is worth putting your money in the riskier shares market because your returns would be far better. But with the frequent downs, it puts people off and so they would tend to invest less.
So as with all things, it's 6 of one and half a dozen of the other. There are tons of people out there giving you diametrical opposed advices. What you have to do is sift and sort and work out what systems work for you!
You have to be brave enough to make your own mistakes. When I did a finance course ages ago, they said don't copy anyone else, it's not the same, whether you're right or wrong, you need to be making your own choices. It just makes more emotional sense! So just get out there and work out your own way of doing it.
Enjoy it all!!
Happy share-ing!!!
Lots of love, Nick Xxx
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