Part 8 of 10 of my series “From Saver to Investor” aimed at those thinking of investing for the first time.

Investing is like hitting the ground running, every lesson is learned in money. If you’re a slow learner it’s going to cost you more. So in the hopes of saving you some pain and profits here’s all you need to help you stay sane when markets fall.

The real test of an investor isn’t when everything’s going up. It’s when everything looks like it’s falling apart. And when the red numbers hit your screen, most people fall apart. Not because they don’t understand investing. Because they panic.

Why people sell low and buy high

It’s instinct. Fear and greed. When markets rise, you feel clever. You buy more.
When markets crash, your stomach drops. You sell. Guess what? That’s exactly backward. The people who sell at the bottom are the ones who miss the rebound. Every crash in history has looked like the end of the world yet every one has been followed by new highs.

You don’t need to predict the next crash. Youtubers and financial influencers will have you believe you need to ‘trade’ it, or ‘possition yourself’ for x scenario or another. You need to train yourself to survive, that is all.

Headlines are designed to scare you and news moves markets. Recently the tweets of a president have been causing turmoil in the markets. Not because there’s any real substance to them, but because people are irrational and they apply their own logic to anything.

You’ll see headlines like this, over and over as the years go by; “Markets Wipe Out Billions!”, “Recession Looms!”, “Investors Flee Stocks!”

All clickbait. Nothing more. History tells us this: markets fall 10% or more about once every two years. They fall 20% or more roughly every six years. And yet, over decades, they still trend up. If you remember that, you’re already ahead of 90% of investors. Next time a headline screams, ask yourself: Will this matter in 10 years? If no — simply ignore it.

Noise is the enemy

You don’t need to check your portfolio daily. You don’t need to read every economic forecast. You don’t need to react to every dip. Your portfolio is designed to ride out volatility. Every minute you stare at the screen is a minute you let fear steal your returns.

Set it and forget it

Automate everything: Monthly contributions. Dividend reinvestment.Automatic re-balancing through all-in-one funds. Remove decision-making. Remove emotion. You don’t control the market. You control your reaction. And that’s where real wealth comes from.

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Crash or boom, headlines or chaos, the market doesn’t care. Stay calm. Stay consistent. Ignore the noise. Let time do the work.