New investors should seek to manage volatility such that they’re not inclined to sell shares after a particularly bad market-losing streak. Indeed, market sell-offs happen. Yet, most near-term investors have their guard down. Even if a long-term growth thesis is still on the table, the markets can still get rocked.
For those with extended investing horizons, such plunges tend to be pretty good buying opportunities. However, patience and discipline are key to doing well in stocks over time. At the end of the day, it’s long-term investors who expect to take a hit to the chin immediately after they’ve bought who may stand to get the best results.
Hello, market volatility!
As May volatility stands to wobble the TSX Index a bit, perhaps new investors should consider battening down the hatches with some lower-beta stocks. Indeed, volatility does not necessarily equal risk. However, new investors who found recent fluctuations in…
