What is an index and how to start investing? The superstitious might compare the situation to the funny whimsical rule of thumb used to predict the peak of a business cycle:
“When magazines write about investing, the collapse is near! All the money suddenly off the stock exchange! ”
Pretty dramatic if you ask me. Of course, I understand the realities, we have a long boom behind us. Winter is coming. So is it worth postponing the start of investing and picking up shares on the cheap bottom of the valley of the price curve?
I would venture to argue that quite a few inexperienced investors have the guts to start investing amid fear and panic. Probably the topic will only start to interest again at the top of the hill of the next rising season. And then many yield euros have not been earned.
Wasn’t the stock market’s golden rule: buy cheap and sell expensive?
Was not. The golden rule of the stock market is to diversify, good man!
I see placement as a muscle being pumped. I’ve started quite small weights, and add them over time. Even strength training doesn’t start with spending 12 hours during eco training in the gym. So you shouldn’t put all your money on the stock exchange on your first visit.
So how do I do it? I diversify my stock market purchases over time. Time decentralization is achieved, for example, by monthly savings. When I buy fund units a little every month, I refuel my portfolio with holdings in both ups and downs. In this way, I can catch up with the average acquisition price of investments in the long run.
We know this: the fall season is coming, sooner or later.
As I continue to invest through the bill, I get a dozen and hundreds of more fund units every month. And while in less than a decade we’re at the same point as today, I can be proud to be in the right place at the right time, shopping at the stock exchange at the bottom of the valley.
Since the amounts I invested are not astronomically high, their melting is not serious due to the coming downturn. And even if I were, I would never invest the money I need tomorrow or next month or even the next few years. I like short-term savings away from the stock market – investing is a long-term business for me.