Keeping your cool can be hard to do when the market goes on one of its periodic roller-coaster rides. It’s useful to have strategies in place that prepare you both financially and psychologically to handle market volatility. Here are a few ways to help keep yourself from making hasty decisions that could have a long-term impact on your ability to achieve your financial goals.
1. Have a game plan
Having predetermined guidelines that recognize the potential for turbulent times can help prevent emotion from dictating your decisions. For example, you might determine in advance that you will take profits when a security or index rises by a certain percentage, and buy when it has fallen by a set percentage.
2. Remember your road map
Solid asset allocation is the basis of sound investing. One of the reasons a diversified portfolio is so important is that strong performance of some investments may help offset poor performance by others.
3. Look at the rear-view mirror
If you’re investing long term, sometimes it helps to take a look back and see how far you’ve come. It can be easy to forget any progress you may already have made over the years. Though past performance is no guarantee of future returns, of course, the stock market’s long-term direction has historically been up.
4. Seek Advice
One of the most important aspects of handling market swings is to review your portfolio with your financial advisor. Our team at TFCU Financial Advisors is here to help you determine what plan is best for you. Call us to schedule a no cost, no obligation appointment with one of our financial advisors.
TFCU Financial Advisors
6501 Tinker Diagonal, MWC
(405) 737-0006
TFCUFinancialAdvisors.org