As stocks go up and down, so do the contents within our stomachs. There is, however, some sound advice that if followed can save you a fortune on anti-acids.
First of all it's a given that the stock market moves in cycles and will have its good and bad days. The key is to have a system that will stay the course and in the long run put you ahead of the curve.

My first bit of advice to you is not to think! What happens when the market goes up? Do you feel euphoric? Do you wish you had more money invested in the market? Do you write a big check to invest more funds? What about a down market? Do you stop investing in it or worse yet sell off your investment holdings? The key to survival is dollar cost averaging. Invest systematically and regularly regardless of what the market is doing. Be a machine. By doing this you eliminate the thought processes that in many cases will lead you to making wrong decisions.

Secondly, do not check the papers eveyday to see how the investments are doing. Short term corrections will give you ulcers and prompt you to make the wrong moves at the wrong time. Long term investing is the goal. Check periodically, but not daily.

Thirdly, diversify. Do not put all your eggs in one basket. Make sure the protfolio is well balanced to give you the maximum gain in up markets, and minimal losses in downturns

Fourth, if you really don't know or understand what you're doing seek the help of a professional broker. Shop around for one, but in the long run you'll be happy that you did.

Learn more about this author, Cyrus Dehkan.
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