Everyone knows that the stock markets can go up and down. Actually, sometime they soar and at other times they dip. It’s those dips that keep many away from investing. And it’s for good reason, as they have either lost money in the past or know someone that has. As, even experts worry about investing a lump sum just before a market crash. However, by drip feeding your money into the market, you can take away some of those worries.
In this case, you stagger your investments across different market conditions by making regular periodic investments. By so doing, you are able to buy more shares when the market falls and if on the other hand, the market moves higher your portfolio enjoys the higher prices.
Also, given that most people earn a salary on a monthly basis, investing on a regular basis seems quite appropriate for their income stream. This way you can slowly build a stash.
With this approach, you can avoid making terrible, emotionally-charged decisions—like selling at the bottom, wrongfully staying out of the market when your fear it’s too expensive or even buying at the peak. All it requires of you is setting up automatic debit from your bank account and then the only time you intervene is to top-up or adjust monthly amount.