fear of investing

Fear Of Investing In The Market And How To Overcome It

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If you’re new to the stock market and have a fear of investing, don’t worry because you are definitely not alone.

If you are letting fear of losing money keep you from investing at all, you need to read this blog post.

Investing can cause valid and genuine fears for new investors. Even experienced investors can become scared at times.

As with most fears, you can take actions to eliminate fear-based hesitations and become a successful investor.

Over 60% of Americans have fear of investing, according to an Ally Financial survey.

So, let’s cover some of the most popular excuses for not investing and how you can overcome the Investing fears behind them.

Why people have Fear of Investing?

Investing is scary because returns aren’t guaranteed. Instead, they depend on how well your investments are doing and how much they’re worth when you sell them.

Fear is keeping people outside the investment world and potentially away from reaching their long-term financial goals.

Where Does Investing Fear Come From?

Plain and simple, fear of investing comes from not knowing what you are doing.

Investing in anything, especially the stock market, when you don’t have a concrete game plan can be scary. It’s a serious journey that shapes your life and can lead you to live a life free from financial burden.

In reality, the only fear of investing you should have is the fear of what you will miss out on if you don’t invest.

Can you get rich off investing in stocks?

There are many people who made a fortune by investing in the share market and there are many who have lost all their money in the stock market. 

Stock Market is a great place to grow your money and become Rich, but it is also a place where you can become Poor.

The stock market can make you a millionaire pretty quickly if you pick the right investments and put enough money into them.

Here are Top 5 ways to Overcome Fear of Investing
Overcome Fear of investing

Educate Yourself

Knowledge is an essential asset when you’re investing. Understanding how the markets and stocks work can help alleviate investor fear.

Education will help you broaden your views and understand those around you.

This will give you an insight into what other people are going through and perhaps why they make the choices they do.

You can also reduce anxiety by becoming more familiar with the economy, investors, businesses, and government influences on the market.

Start small to avoid fear of investing


Making small investments may be a good option for those who don’t have in-depth knowledge of investing or don’t have much money to commit to the stock market

Instead of throwing all your money in at once, start with an amount that you’re comfortable with.

Don’t be afraid to start small.

Begin with sums of money that you can afford to lose and not risk too much while learning.

As you watch your balance grow, you’ll become more comfortable investing more considerable sums if you can afford to.

Invest for Long Term

Many market experts recommend holding stocks for the long-term.

The main reason to buy and hold stocks over the long-term is that long-term investments almost always outperform the market when investors try and time their investments.

The advantage of long-term investing is found in the relationship between volatility and time.

Putting your money in long-term rather than short-term investments also provides tax advantages on capital gains. 

Have an Investment Strategy

When you have an investing plan, it becomes easier to invest.

The best investing strategies are not always the ones that have the greatest historical returns.

The best strategies are those that work best for the individual investor’s objectives and risk tolerance. 

An investment strategy is what guides an investor’s decisions based on goals, risk tolerance, and future needs for capital.

Some techniques may help you excel, while others could be confusing and counterproductive.

Control Your Emotions

You are bound to be emotional and overwhelmed when you first start investing in the stock market as earning good returns may make you happy but losing money may hurt.

Emotions are bound to come to the forefront while investing. The chances of making the wrong investment decision increase when you decide emotionally.

Keep your emotions in check while investments. Good returns make people happy, but losses lead to despair and many people stop investing.

It is not advisable to halt investments after losses, which is why it is important to keep emotions aside while investing.

An unemotional decision-maker would assess the decision against facts and data and probably hold on to quality stocks while redeeming the ones that are not fundamentally strong.

Learn to never make your investment based on your emotions.

Summary

Fear of investing in the stock market makes sense in the short term. After all, we’ve all just witnessed one of the biggest crashes in history.

When you start looking to the future, though, drops in the market are overshadowed by overall, long-term growth.

Learning how to invest and understanding what you’re investing in WILL give you the confidence that you need overtime to start putting your money into the stock market.

About the author

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Ganesh B Nayak

Ganesh is an Entrepreneur and a Successful Stock Market investor with 5+ years of experience in Finance Industry. Experienced in all aspects of business formation, operation, finance, and management. Ganesh help finance professionals and Fin-tech startups to build an audience and get more paying clients online.

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Martin
Martin
18 days ago

Aw, this was a really nice post. Finding the time and actual effort to make a good article– but what can I say– I procrastinate a lot and never seem to get nearly anything done.

Monica
Monica
18 days ago

I enjoy reading an article that will make men and women think. Also, thank you for allowing me to comment!