Money secret No. 14: Don’t sell when stock prices drop!
Pay attention – this is a principle you really need to take to heart. Repeat this mantra again and again: The financial markets have their highs and their lows. I, Andrea, have personally experienced several crises (Brazil 1998, 2001 dot-com bubble, 2007 financial crisis, 2020 COVID crisis). I know from personal experience that it’s perfectly normal to get nervous about the ups and downs of the markets.
The most important thing is to always keep it in the back of your mind that you’re investing long term. If you’ve invested in a portfolio of stocks and bonds, it’s very likely that you’ll achieve a good return. If you sell at the low points, you surrender potential future returns. That’s why you have to grit your teeth and hang on through these phases – don’t get nervous, don’t sell. Instead, try to look at these market lows a different way. It’s actually the perfect time to buy when the market is at rock bottom.
Money secret No. 14: Investing is like shopping: Buy things when they’re on sale!