Reduce risk to sleep well

As a professional in the investment and insurance business, I am very used to the emotional boundries people have with investing. No matter what sort of investment it is. Crypto, stock, bonds, etc... the emotional problems people have with possibly losing some of their money are the same. Now spreading your investment in different investment classes and also geographically is of course very important. But what most people don't do, is spread it into time. They are looking at a too small horizon, and think they need to invest immediately so they won't miss the next bull market.

Misconception

That is just a misconception, the next bull run is not what your aiming at. The aim should be much further, the horizon should be set a lot further. By investing regularly over a longer period of time, instead of investing all at once, the risk of missing the next bull run is out of the equasion. Because you will invest before it, during it and after it. With a median price paid as a consequence. And by that the risk is spread and the horizon is set further. That horizon will have more bull runs, and of course some bear markets too. But the further the horizon the bigger the gains, that is what history has proven us, time and time again!

Take emotion out of the equasion by investing regularly instead of at once!

Compounding

And the reason for that is compounding, the longer you stay invested and keep investing, the more your investment starts compounding. And that should be the aim!

And more importantly, you sleep well! Because that is our biggest asset, our health, and that should not be affected by an investment.

Sincerely,

Pele23

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