Most people are aware at least to some degree of the volatility of the stock market, where fortunes can literally be won or lost overnight. We’ve all heard the horror stories of some of the biggest crashes in history but many of those stories are also over-exaggerated. The truth is that while the stock market can crash quickly and unexpectedly, it also has measures in place to correct itself and over time, it always does.


In March of 2020, for instance, when massive lockdowns first hit the U.S. and pandemic panic began in earnest, the stock market experienced several massive crashes. Not only did it bounce back to pre-pandemic levels within a few months but subsequently soared to new heights. In fact, the stock market performed so well in late 2020 and into 2021, that it is considered to have been a major contributing factor to a sudden onslaught of early retirements.


Although it is certainly true that the stock market can be volatile, that volatility is generally in the short-term rather than in the long term. This is why having a diverse portfolio is critical, however. The old adage about not having all your eggs in one basket is particularly true when it comes to investing. There are also higher and lower risk ways to invest in the stock market. Some people prefer to buy individual stocks in certain companies while others prefer to invest in Exchange Traded Funds or other guided funds.


The great thing about investing today is that you don’t even need a large amount of cash to get started. There are a number of apps and brokerages today that will allow you to buy small slices of larger stocks. For instance, a single share of Amazon stock would cost you upwards of $3,000 but a number of different apps and brokerages will allow you to buy as little as $1 worth of stock. Of course, you will only get a small percentage of a single stock, but over time you can always buy more. The bottom line is that investing in the stock market is a great way to grow your money but when you get in and how much you put in will depend a great deal on your current financial situation as well as your tolerance for risk.