Investing 101 - Module 4.2

Investment Strategy & Risk Management - Investment strategies should be tailored to individual goals and life circumstances, as a one-size-fits-all approach is not suitable [3] - Sticking to a well-defined investment plan is crucial, despite market volatility and inevitable downturns [3] - Panic selling during market downturns can lock in losses and prevent participation in subsequent recoveries [4][5][6] - Market crashes can present opportunities to buy stocks, as evidenced by insider buying activity during financial crises [7] - A long-term mindset, focusing on the fundamental value of companies, is essential for navigating market volatility [8][9] - Building a margin of safety into stock purchases allows for error and provides a buffer against market fluctuations [9][10] Investment Timing & Dollar Cost Averaging - Timing the market is less important than the investments themselves; even investing at the worst times can outperform not investing at all in the long run [10][11] - Dollar cost averaging, involving regular investments regardless of market conditions, is an effective long-term strategy [11]