People usually go through: Excitement → Fear → Hope.
The success of the investor depends on how he/she handles this emotional rollercoaster.
In a rising market, everyone makes money. The tough part is staying calm and making smart decisions when markets are flat or falling.
Real example is of Smallcap index (2017-2022)
Between 2017 and 2022, Smallcap index went through downward cycle. But eventually paid the investor who held it or churned it handsomely.
To handle these ups and downs, keep these tips in mind:
1. Spread Your Money Wisely: Good balance between risk and safe.
2. Keep an Eye on portfolio: Adjust based on company earnings and market conditions
3. Don’t Overdo It: Diversify, but don’t buy too many things
4. Get Help if Needed: If managing portfolio is overwhelming, hire an expert to do it for you.