The best way to reduce your risk of losing money in the market is to:
1. Invest in different buckets of assets that reliably grow over time
2. Regularly rebalance between those buckets
3. Hold your investments for as long as possible
In the next two months, the market could go up or down. In the next two years, it’s not a sure thing, but it’s likely to be higher than it is today.
In the next twenty years, the market is virtually guaranteed to be higher than it is today. And if it isn’t, there are likely far bigger things to worry about than your investment accounts.
Buying and selling individual stocks based on day-to-day trends and quarterly reports is super risky, basically gambling.
Holding your Investments for decades is one of the least risky ways to invest while still getting better returns than you would with GICs or in a high-interest savings account.
You can be risk averse and still invest in the market. You just need patience, the right approach, and a long-term mindset.