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New Immigrant's Financial Roadmap
9. Investing and Wealth Growth/The Stock Market Rollercoaster
9. Investing and Wealth Growth Illustration
Syllabus Slides

The Stock Market Rollercoaster

01.Market Swings

The stock market fluctuates daily. Markets will periodically drop by 10% (corrections) or 20%+ (bear markets). This is a normal part of the economic cycle. Historically, the US market has recovered from every single drop.

02.Avoid Emotional Selling

The biggest mistake investors make is panicking and selling their investments when the market drops, locking in their losses. Stay calm, maintain your long-term focus, and continue investing regularly (dollar-cost averaging) to buy shares at cheaper prices.

03.Patience and Discipline

Wealth building is a marathon, not a sprint. The most successful investors are those who stay disciplined and leave their portfolios alone to compound over decades.

Chapter check

Q1.What long-term average yearly return does the course cite for the US stock market?

Q2.An index fund tracks:

Q3.What does the course call the biggest mistake investors make?