Let Your Stomach Be Your Guide!

Times of adversity are when we learn things about ourselves.

If you own individual stocks, you’re learning something about yourself right now.

The question you should ask yourself is: “Can I stomach owning individual stocks?”

Are you losing sleep at night thinking about the stock market?  Are you feeling physically ill, in a literal sense, when you look at your brokerage account?  If you answered “yes” to either of these two questions, you might want to go with an index fund.  It won’t make you immune to some pain, but it’s not as volatile as owning, say, Roku (NASDAQ: ROKU).  I talk about index funds in The Stock Market is For Everyone; they are one of the best vehicles to wealth there is!

As we approach a new year, this is something you definitely want to address.  Please only do what you are able to live with.

I happen to have a very high risk threshold.  It’s just the way I am, so it works for me.  Don’t get me wrong – I don’t like losing money any more than you do.  But I can sleep at night, and I can stomach the volatility.  That’s not for everyone.

Do what’s best for your peace of mind.  Wealth without health is, for all intents and purposes, useless.

*  The Stock Market is For Everyone, Eric Milton’s short guide to stock market investing for beginners, is available in e-book and paperback formats.  If you like what you see on this blog, we hope you’ll take a moment to purchase and read the book, let us know what you think via a blog comment or Amazon review, and share this information with others!  Thank you. *

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