Do you remember the notorious advice?
Invest only what you can afford to lose.
Well... I hate it !!!
So let’s re-state that advice:
Invest only you don't need in the short term. So you can still smile even if market goes down.
That’s right, invest only what you can afford to hold for the long-term. But remember, we all have long-term needs such as retirement. So that means that everybody should be investing for the long-term!
If you haven’t started because of the confusion that the above investment advice has caused you, check your portfolio now and start moving some of your low return fixed income assets to higher yielding long-term assets. And after you do, brace yourself as you will definitely experience the highs and lows in the market.
Stay calm and remind yourself that you will not need this until after several years. You have your short-term funds to take care of your short-term needs.
