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One of the things that holds many people back from investing (aside from retirement accounts, of course) is fear. Especially right now, fear of investing is running a little high amongst some. Over at Get Rich Slowly, there are some good investment strategies that can help you in overcoming your fear of investing:

1. Diversify. Adding diversity to your investment portfolio can give you a sense of calm. A mix of higher risk and lower risk investments, as well as investments in a variety of sectors, can help you feel more confidence about your portfolio and your investing strategy.
2. Dollar-cost averaging. This is not always the path to sexiest returns, but it will, usually, allow you to earn money through investing at a steady rate. This can help you avoid the stress that comes when you try to “time” the market.
3. Ignore investments. Personally, I’m a big fan of the “buy and hold” investment strategy. Pick something solid, and then hold on to it. Get Rich Slowly points out that watching your investments every day, if you have a fear of investing, will only drive you crazy. Instead, check in with your investment portfolio about once every month or two.
4. Index Funds. If you are interested in steady returns, but have little confidence in your ability to pick the “right” investments, you could consider index funds. These are funds made up of the companies on an index. They offer instant diversification, and you will likely earn the market average. I love these, since they are low maintenance and add an element of stability to my investment portfolio over the long run.

You can use all of the above strategies, or just pick one or two. It should be noted, though, that no matter which investment strategy you choose from the list above, you will in all likelihood make money at a slower pace.

And, most importantly, remember that in general the market makes money over the long haul. Downcycles are just that — cycles. Overall, you are likely to make money with carefully chosen, solid investments. As you become more comfortable as an investor, you can branch out to some of the riskier investment strategies.

Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional.

Tags: investing blog, investment portfolio, investment strategies, Get Rich Slowly,
overcoming fear investing, investment portfolio, stock market blog