It’s awesome when you see your investments going up!
It’s the kind of feeling that makes you feel powerful; invincible even.
And when your investments go down you feel a pit of despair in your stomach. “Please go back up some so I can sell and I’ll never invest like that again,” you plead to the investment deities.
Of course this is all good reason you should carefully invest. It’s not hard to do but if you don’t have the stomach to see your investments fall in value then you’re better off investing in broad sectors (like the S&P 500 or all stocks). Honestly, most people aren’t that great at picking stocks so your best long-term plan is to stick to sector funds and ETFs. And even then you might not want to look at your picks too often.
About a month and a half ago I jumped into the Grow Your Dough investment challenge.
This challenge pits a growing number of personal finance writers against each other for a year to invest $1,000 and see whose investments would come out on top.
I chose to pick individual stocks.
If you take a look at the other people in the competition you’ll see a number of different investing strategies. It’s pretty cool to see how everyone interpreted the challenge.