For first-time investors, getting started can seem daunting, especially when the market is experiencing a lot of volatility. Day-to-day fluctuations in the market are often influenced by outside forces, like trade disputes and uncertainty.
That is why it is important to remain calm and avoid making rash decisions. Instead, stay focused on your long-term goals. This includes maintaining a diversified portfolio so no single investment overly affects your bottom line.
Though tempting, do not compare your returns to a single index or to other investors for that matter. Their goals are likely to be different than yours, as no one invests exactly the same way.
Research has shown that the most successful long-term investors remain patient during swings in the market. Your financial plan is only as good as your ability to see the eventual payoff. Staying the course could mean reaching your financial goals sooner than expected, and with a lot less stress.
Disclosure: NBCUniversal and Comcast Ventures are investors in Acorns.