I’m Investing $750,000 After Losing $1 Million in Cash—Will I Avoid My Past Mistakes This Time?

I’m Investing $750,000 After Losing $1 Million in Cash—Will I Avoid My Past Mistakes This Time?

Investing in the stock market is one of the hardest financial decisions anyone can make. It can very much feel like you are gambling with your money, and while the stock market has continuously risen over time, it still feels like you are taking a huge risk and could lose it all.  Key Points This Redditor fears investing in the market again after losing $25,000. The market is a gamble, and you can win as easily as you lose. The reality is th…

During periods of financial volatility, keeping calm can be key to achieving better returns. Although it is natural to feel uncertainty when the market falls, these stages can become an opportunity if a constant investment strategy is maintained. A Fintual analysis revealed that, far from posing a threat, market falls allow buying more units with the same amount of investment. “When the market falls, your monthly investments yield more because y…

Recent chaos shows investors are better off sticking to a plan and avoiding market timing

Anyone who tried to sell stocks during the downturn in hopes of trying to buy them back later has probably suffered losses.

Understanding investor behaviour: Why panic selling can be costly

Peter Watson writes that investor behaviour can be more risky than investing in stocks.

Market turbulence tests investors' nerves and advisers’ messaging

Recent market turbulence has served to remind investors that nothing is certain in financial markets, and you must be prepared for risk. Financial planners and wealth managers try to coach their clients about the importance of long-term investing and ‘time in the market’, but has the message got through? What have clients been asking their financial advisers in recent weeks, and how have advisers been reassuring them? At the start of April, swee…

VALUE: After Hours (S07 E13): Panic Selling, Risk Off, and Behavioral Finance | The Acquirer's Multiple®

During their recent episode, Taylor, Carlisle, and Barry Ritholz discussed Panic Selling, Risk Off, and Behavioral Finance. Here’s an excerpt from the episode: So, if you’re uncomfortable at a 70/30 or 60/40, because you know you need this money, you want to make sure that you don’t do anything silly. You mentioned the study that showed 31% of people who panic out in markets never return to equities. And that study comes post-financial crisis. S…