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Stress and Investing: A 20-Point Checklist

Investment and stress are directly proportional to each other, but most people cannot see it. Investment activities include an enormous amount of stress, but people are so blinded by the amount of money involved in investment activities that they do not pay heed to the stress factor which has an adverse effect on the body. In today’s world, to be able to make more money, people put themselves through enormous stress, which isn’t really necessary!

Here is a 20-point checklist that will help people in relieving stress from investment and Make More Money

1) One way to manage stress is diversifying risk or creating a diversified investment portfolio, which means that an individual could invest in many stocks, hence all his money is not stuck in one place. If one of the stock crashes another will help to pull things back up.

2) An individual should invest in businesses which he understands, not in those he doesn’t understand. This will help him earn higher returns as he will be able to anticipate the business activities, and as a result, make more money.

3) If keeping track of jumping stock prices is very difficult for anyone, they can approach an asset management company which will help manage the funds on the beholder's behalf.

4) An individual should avoid stocks from industries or companies that tend to have high debt on their balance sheet. One can always approach expert wealth advisors in this context as they have years of experience in the field of finance and investing.

5) An individual should invest in high-quality stocks, also known as the blue-chip stocks, which belong to well-established companies. In these stocks, it is impossible to earn higher returns overnight but it also does not have any risk involved as they belong to a well-organized firm.

6) An individual should never borrow funds from other institutions or anywhere to invest, it should be one’s own savings which are not required by them for a particular period of time.

7) If anyone is having trouble in diversifying their fund they should leave this task to the professionals or an asset management company which can be monumental in creating a diversified investment portfolio in exchange for some nominal charges.

8) An individual should not focus on the CAGR of a single stock if he has a diversified investment portfolio. At the end of the day if he finds out that one of his stock is not performing then, well, there are other stocks to back him up!

9) In order to reduce stress, investment ideas should not be discussed with strangers on any online forums. Wealth Advisors would be ideal to provide valuable investment information.

10) One should always invest in good businesses and avoid the practice of checking stock prices on a regular basis, as it is a major cause of stress when it comes to investing.

11) Other than focusing on different stocks one should focus on their portfolio more often

12) An individual should collect first-hand information about investments products like derivatives and stay away from such type if they don’t grasp the concept well.

13) Instead of thinking about making money from the Stock Market can be stressful, it is better to see it as a place to save money and create wealth in the long-run.

14) One of the sure shot ways to ensure that investing and trading don’t become stressful is by ensuring that they aren’t your source of income. To achieve that, it is advisable to have another paying job in hand.

15) If anindividual wishes to make more money from the stock market he should avoid working in it. It’s better to invest one’s own money by working somewhere else and fulfilling dreams than working towards investing other people’s amount and waiting to become rich.

16) An individual should read more often to vitalize his mind, which will enable him to think right, invest wiser and stay updated at all times. But reading books relating to investment may be stressful. So it is ideal to read books other than the investment ones, every once in a while!

17) An individual should meditate and get more sleep, he should avoid online stock trackers.

18) An individual should avoid predicting the stock prices, the business environment is full of uncertainty and anything can happen.

19) An individual should avoid high-frequency trading and be a long term investor instead because it always helps to build towards a future nest-egg.

20) Last, and most importantly, always have the goal in mind before you invest and ensure that you stay on that track all through.

Follow this 20-point checklist and you will find that investing is possible without stress after all!