Getting Comfortable With Your Wealth Moving In Ranges Is A Super Power

Investing most of your money in the stock market can sometimes feel like an emotional rollercoaster. Stock prices fluctuate regularly due to factors such as economic news, corporate earnings, and global events. As a result, the value of your investments will move in ranges—sometimes significantly. Your portfolio may show strong gains one month and experience a sharp decline the next. However, this volatility is a natural and expected part of investing in the stock market.

Accepting these ups and downs is crucial to a successful long-term investment strategy. Trying to time the market—buying when prices are low and selling when they are high—is possible, but very difficult to do consistently, even for experienced investors. And if you do sell high, in a taxable brokerage account you'll have to pay taxes on your gains, so you have to factor that in. Instead, staying invested and remaining patient helps you capture the market's overall growth over time.

One way to mentally prepare for these fluctuations is to change your mindset about your net worth. You can do this by accepting that your wealth will move in ranges. Sometimes it will be at the upper end of the range, and sometimes it will be lower, but that's ok as long as your short-term financial needs are covered. Getting comfortable with your wealth moving in ranges is like having a superpower in investing. It means embracing market volatility and staying calm when your investments experience temporary declines.

Many people react emotionally to market drops, making impulsive, costly decisions. However, if you can remain disciplined and focused on your long-term plan during those times, you gain a significant advantage. This mindset allows you to weather downturns and stay committed to your strategy, understanding that short-term fluctuations are normal. Ultimately, this resilience helps you benefit from the market's historical upward trend of long-term growth, making you a more successful and confident investor.

If you would like to learn more about our personal wealth-building process, please reach out to [email protected] , or text/call 617-356-1852 with any questions you may have.

For educational purposes only. This is not investment advice. All investing is subject to risk, including the possible loss of the money you invest. Past performance is not indicative of future results. You cannot invest directly into an index without incurring fees and expenses of an investment in a security or other instrument. This is not a recommendation. Diversification does not ensure a profit or protect against a loss. Consult with your financial advisor before making any investment decisions.

Leverage Financial Advisory is an Investment Advisor registered with the State of Massachusetts. Our current disclosure brochure, Form ADV Part 2, is available for your review upon request, and on our website, www.leverageadvisory.com .