The market fluctuates over the course of time. You of course must be able to deal with the ups and downs in the stock market. It does not matter where your portfolio starts, it is where it finishes. Watching the stock market on a daily basis, can either make you quite happy or depressed. It just depends on how well the market does that day.

When you choose your investments, you had an expectation that they would grow over the course of time. This year you may experience a return of 25%. It is important to be able to rationalize that this return is not the norm, over a long period of time. If it does happen, then you should be ecstatic about your investment choices. However, if you have a negative return, the next year, it is not time to throw in the towel. The stock market often moves in cycles along with the U.S. economy. If you invested strictly in mutual funds, your negative return usually can be tied to a bad economy, unless into invests heavily, in a particular sector.

The fear of losing money is normal. No one wants to open their investment statement and see a negative return. This is however part of the stock market experience. Find me a person who has never had a loss in the market, and we will show you a newborn baby or someone who puts all of their money in the bank.

The ability to withstand the temptation to jump in and out of the market is important. It prevents you as an investor, from missing some important, upswings in the market. The old saying "what goes up must come down" never was more true. However no one ever said it had to fall to the bottom. It is important as an investor, to keep your chin up.

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