15 Tips for Nervous Investors

The idea of investing can be daunting, whether you're new to it or not. After all, any time you invest, you do risk losing money -- even though there are steps you can take to mitigate that risk. If you're a self-proclaimed skittish investor, here are a few tips worth following.

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If the idea of throwing $20,000 into a brokerage account and investing it gives you heart palpations, don't. Instead, start small. Invest $3,000 and see where that takes you.

It's scary to think about taking losses in your portfolio when you might need that money six months down the line. So don't put yourself in that position. Instead, only invest money you won't be needing for a good 10 years or more.

It can be nerve-racking to invest when you know there's the potential for stock values to tumble. But remember, downturns are normal. What you should focus on is the fact that the stock market has a long history of recovering from declines and rewarding investors who keep their portfolios intact.

The idea of investing at the wrong time can be anxiety inducing. So rather than attempt to time the market, commit to a regular investing schedule and stick to it. It's a concept known as dollar-cost averaging, and it can help you stay on target.

ALSO READ: What Is Dollar-Cost Averaging?

Does crypto confuse the heck out of you? Then don't buy it. Investing in assets or businesses you don't understand just doesn't pay, so stick to options you're more comfortable with.

5 Stocks Under $49
Presented by Motley Fool Stock Advisor
We hear it over and over from investors, "I wish I had bought Amazon or Netflix when they were first recommended by The Motley Fool. I'd be sitting on a gold mine!" It's true, but we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Click here to learn how you can grab a copy of "5 Growth Stocks Under $49" for FREE for a limited time only

A diverse portfolio could offer you protection from losses during periods when stock values decline. To that end, aim to load up on stocks across a wide range of market sectors, from tech to banks to energy.

Dividend stocks can make it easier to get through a stock market downturn. That's because the dividend income you take in can help offset losses in your portfolio, at least to some degree. And holding dividend stocks may make you more comfortable.

Index funds take a lot of the guesswork out of investing, because what you're doing is putting money into the broad market rather than betting on individual businesses. If the idea of handpicking stocks makes you nervous, then index funds may be a good bet.

ALSO READ: How to Invest in Index Funds

If you're nervous about investing, you don't have to go it alone. Instead, enlist the help of a financial advisor who can help address your concerns and work with you to set up a portfolio that takes your risk tolerance into account.

Checking your portfolio daily or even weekly could mess with your head, especially during periods of market turbulence. A better bet? Log on every few months to see how you're doing, but stay away otherwise.

5 Stocks Under $49
Presented by Motley Fool Stock Advisor
We hear it over and over from investors, "I wish I had bought Amazon or Netflix when they were first recommended by The Motley Fool. I'd be sitting on a gold mine!" It's true, but we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Click here to learn how you can grab a copy of "5 Growth Stocks Under $49" for FREE for a limited time only

Knowing you're invested appropriately for your age could give you peace of mind. If you're nearing retirement, for example, you'll want a stronger concentration of safer investments, like bonds, than when you're young.

If you're nervous about investing, you may be inclined to stick with more conservative assets, like bonds. But those could stunt your portfolio's growth, so try to push yourself a bit outside your comfort zone if your brain is telling you not to buy stocks at all.

Maybe you're investing to grow wealth for retirement, or to put your kids through college. Keep reminding yourself that investing could be your ticket to achieving the goal you have in mind.

ALSO READ: Why Every Parent Should Consider a 529 Plan

The more you educate yourself about investing, the more empowered you might feel to make smart decisions for your portfolio. If there are assets or strategies you're not familiar with, learn about them so you have more options.

Many people are nervous about the idea of investing -- it's not just you. It could pay to talk through your concerns with friends, neighbors, and colleagues. Chances are, some of them are in the same boat, and it may be possible to give one another advice and encouragement.

5 Stocks Under $49
Presented by Motley Fool Stock Advisor
We hear it over and over from investors, "I wish I had bought Amazon or Netflix when they were first recommended by The Motley Fool. I'd be sitting on a gold mine!" It's true, but we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Click here to learn how you can grab a copy of "5 Growth Stocks Under $49" for FREE for a limited time only

Investing money is an important step on the road to financial freedom and security. If you're nervous about investing, do your best to push past those fears so you can put your money to work -- and benefit from a portfolio that serves you well in the long run.

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