{"id":3059,"date":"2017-06-26T07:01:26","date_gmt":"2017-06-26T07:01:26","guid":{"rendered":"https:\/\/raizinvest.com.au\/investors\/the-investment-rollercoaster\/"},"modified":"2024-04-04T19:08:16","modified_gmt":"2024-04-04T19:08:16","slug":"the-investment-rollercoaster","status":"publish","type":"post","link":"https:\/\/raizinvest.com.au\/investors\/blog\/the-investment-rollercoaster\/","title":{"rendered":"The Investment Rollercoaster"},"content":{"rendered":"
\"image\"<\/figure>\n

By Clayton Daniels, author of Fund Your Ideal Lifestyle<\/a><\/i><\/p>\n

I
\nremember when I first started trading stocks. Before the likes of Raiz came
\naround, the only way to access the market was through a broker. These brokers
\nhad minimums of $500. As a uni student a decade ago at 23 years of age, that
\n$500 minimum was a confronting minimum.<\/p>\n

My
\nemotional investment was high. If the stocks went up, I was elated. If the
\nstocks went down, I was devastated. It was only at the end of a few years of
\nthis type of investing \u2013 which of course didn\u2019t end up all too profitable \u2013 did
\nI learn how unbeneficial it was to be emotionally invested in my investments.<\/p>\n

Because
\nwhen investments go down, it doesn\u2019t automatically equal a bad result. It\u2019s a
\nbad result if you need the money straight away, but if you don\u2019t, all it means
\nis you now get to purchase more of the asset at a discount.<\/p>\n

This
\nis counter intuitive I know, but it is how the ultra rich get richer. When the
\nGFC happened, there was a massive transfer of wealth from the middle class to
\nthe upper class because the middle class sold down at the exact time they
\nshould have been buying.<\/p>\n

At
\nthe end of the day, if you are investing, you are accepting that what you are
\nbuying is a fair price. If your investments temporarily go down, then you
\nshould be buying in these moments. This very simple investment strategy is
\ncalled \u2018buying in the dips\u2019.<\/p>\n

If
\nyou are emotionally investing, this does not make sense. But this is why being
\nin control of your emotions during your investment career is so important. When
\nthe roller coaster happens \u2013 as it will every year of your investment career \u2013
\ntake the opportunity to buy more. If you ultimately believe the world will
\ncontinue to produce value, and continue to earn a profit, then ultimately the
\nstock market will go up again, and so will your investments. Especially if they
\nare invested across indices such as with the Raiz portfolio. For more information on Raiz fees, click here<\/span>.<\/a><\/p>\n

If
\nyour only response to a falling market is \u2018sell sell sell\u2019, then perhaps you
\nshouldn\u2019t be in the market. Again, I know this is counter-intuitive, but your
\ninvestment goals should be to control your emotion, and buy more when the stock
\nmarket goes down, not the other way around.<\/p>\n

We
\nall need reminders of this every now and again, and as we have seen some
\nroller-coaster action as of late, I figured this was a timely reminder.<\/p>\n

 <\/p>\n

\n

 <\/p>\n

Don\u2019t have the Raiz App?<\/h3>\n

Download it for free in the App store or the Webapp below:<\/p>\n

\n
\"download-raiz-app\"<\/a>
Click to download the Raiz app<\/a><\/figcaption><\/figure>\n

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Important Information<\/strong><\/span><\/em><\/p>\n

The information on this website is general advice only. This means it does not take into account any person\u2019s particular investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the product.<\/em><\/p>\n

A Product Disclosure Statement for Raiz Invest and\/or Raiz Invest Super are available on the Raiz Invest website and App. A person must read and consider the Product Disclosure Statement in deciding whether, or not, to acquire and continue to hold interests in the product. The risks of investing in this product are fully set out in the Product Disclosure Statement and include the risks that would ordinarily apply to investing.<\/em><\/p>\n

The information may be based on assumptions or market conditions which change without notice. This could impact the accuracy of the information.<\/em><\/p>\n

Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz Invest or Raiz Invest Super.<\/em><\/p>\n

Past return performance of the Raiz products should not be relied on for making a decision to invest in a Raiz product and is not a good predictor of future performance.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

By Clayton Daniels, author of Fund Your Ideal Lifestyle I remember when I first started trading stocks. Before the likes of Raiz came around, the only way to access the market was through a broker. These brokers had minimums of $500. As a uni student a decade ago at 23 years of age, that $500 […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false},"categories":[1],"tags":[],"yst_prominent_words":[]}