The Most Exciting Rollercoaster Ride Out There – The STOCK MARKET!
Adrenaline.... Millions of people every year chase after an adrenaline "rush" by doing crazy, insane stunts, that could result in serious injury or even death! Why would people put their lives at risk just for this "feeling? It is because adrenaline is one of the most powerful hormones that we humans produce. It is produced when we feel fear, and it can cause us to make rash decisions. DON'T let this fear prevent you from investing your money in the market!
The stock market is a much like this roller coaster to the right. It goes up, and it goes down. It can feel like it goes upside-down. What we need to remember as investors is that, unlike a roller coaster, the stock market never returns to the "ground". It will not drop to "zero". (I suppose it is possible that the market could drop to zero in theory, but that would mean that the US has collapsed as a country, and you probably have more important things to worry about than the market!) It is a roller coaster that always ends up higher than it started. It sounds easy, but you will be tested when you have a $200,000 retirement account that loses $15,000 in one day because of a dip in the market! You'll want to sell, sell, sell to cut your losses, only to realize that the next day you missed out on the bounce-back that would have recouped much of your losses.
Take a look at the chart below. It shows the Dow Jones Industrial Average from its beginnings in the 1890s up through about 2012. You will see that there are peaks and valleys all throughout its history, but what stand out for you is that the overall trend of the market is that it goes up!
So what does this mean for investing? The key point is that no matter when you decide to invest, the market in the future will be higher than it is today. Detractors might say, "But what about the market crash that they say is coming?" You know. They are right. the market IS going to crash at some point, BUT it will rebound and go to higher highs than it was before that crash. The key is to consistently invest money into this "money-growing rollercoaster!" Don't try to time those "dips" and ignore them when they happen! Don't let the fear overtake your common sense and realize that "dips" are opportunities for you to buy shares when they are cheaper! This is especially important in the very volatile market conditions we are in right now. The market drops 10% one week, only to jump by 15% the next week.
You should be more afraid of not preparing for your future than you should of investing in the market. Don't let the fear win! Prepare for your future and...
Keep Stackin!
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