New to investing

Investing in ETFs (Exchange Traded Funds) can be a great way to diversify your portfolio and gain exposure to a broad range of assets. However, seeing your investments dip into the negative can be unsettling, especially if you’re new to investing. Here are some tips to help you manage your emotions and maintain a long-term perspective:

1. Understand Market Volatility: It’s important to recognize that markets naturally fluctuate over time. Prices of securities, including ETFs, will go up and down due to various factors like economic changes, political events, or market sentiment. These fluctuations are a normal part of investing.

2. Focus on Long-Term Goals: Keep your investment goals in perspective. If you’re investing for the long term, short-term losses may not significantly impact your overall financial goals. Historically, markets have tended to increase in value over the long term, despite short-term volatility.

3. Diversify Your Portfolio: ETFs are inherently diversified, which helps spread risk. However, consider diversifying across different types of ETFs, such as those that track different sectors, regions, or asset classes. This can further reduce risk and smooth out returns.

4. Regularly Review but Avoid Over-Monitoring: It’s wise to review your investments regularly to ensure they align with your financial goals. However, constantly checking your portfolio can lead to unnecessary stress and may tempt you to make impulsive decisions based on short-term market movements.

5. Educate Yourself: The more you understand about how ETFs and the markets work, the more confident you may feel about your investment decisions. Consider resources that explain market fundamentals and investment strategies.

6. Consider Dollar-Cost Averaging: This investment strategy involves regularly investing a fixed amount of money into a partic

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Buy more while they are on sale.
Don’t spend up all your savings buying in the first day of a fall, it may fall further («Don’t catch a falling knife»).
Fri (4-Apr-25) had some big falls, but then Mon (7-Apr-25) had more falls. The GFC fall lasted 18 months from memory, but I bought too early.