Hold on to your cash for a little longer
Taking the time to learn about investing before spending any money or assuming any risk helps beginners understand the market, adjust their expectations, and calm any anxiety.
"The key to calming nerves is setting appropriate expectations," Molly Stanifer, CFP®, financial advisor withBefore investing, Stanifer suggestsabout what to expect from an investment so you can know what you're getting into, as well as doing your own research from reputable sources. When researching,"focus on the market you are considering investing in, not a particular product," Stanifer added. For example, look at an overall index — a measurement of a section of the stock market computed from prices of selected stocks, generally used to track performance of those stocks — of historical returns, and make sure you are reviewing the right index, as well.
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