There's been a hell of lot of news over the past few weeks about investors making bank or losing everything with stocks, cryptocurrencies, real-world currency, and all sorts of other places.
But you might have missed the moment the Australian Stock Exchange (ASX) hit an all-time record on May 31.
The S&P/ASX200 nudged a little over 7,200 points for the first time in its history, leaving everyone shocked.
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While it wasn't long before it dipped below its peak of 7,203.3, it did give people a lot of confidence that the Australian economy was ticking along nicely in a post-pandemic environment.
By the end of the week, the S&P/AASX 200 was sitting cleanly above 7,200. But just when you thought the good times had stopped rolling, the stock market hit another record high on June 7 at 7,304.80 points.
It was the 13th monthly rise for the ASX 200 out of the last 14 months and this latest boost added a whopping $860 million to the index since bottoming out in the middle of the Covid-19 economic crash.
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But imagine if you had shares in the ASX200 before it hit that record high. You'd be rolling in it...depending on how much you had invested.
Naturally, you're probably wondering whether to get into investing and how you'd even go about doing it.
The best piece of advice is: be rational and stick with an investment strategy.
Paulo Gabriel SA explains how you need to think with your head and not your heart when it comes to investing.
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"Emotions can be very unhealthy and dangerous for an investor because they can lead to irrational decisions based on short-term pain, which causes you to lose sight of your strategic objectives and financial goals," he wrote earlier last month.
"Whether it's fear, anxiety or euphoria, allowing emotions to play a role in investment decisions can be costly.
"The most common emotional reaction is that investors either regret or overreact during times of stress, euphoria or panic.
"This is especially true of retail investors, who typically invest their hard-earned cash expecting a return just like every other investor on the planet.
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"However, when their investments lose value during a correction or bear market, it can cause stress and panic.
"The key is to take a rational approach to investing, similar to the unemotional approach of a professional portfolio manager. This mindset can be achieved with due diligence, a disciplined investment process and a sense of perspective."
So, it's important not to go absolutely gangbusters and expect to make millions in a couple of minutes. And don't restrict yourself to local stocks, diversify your portfolio and look at international markets that are performing well.
Go slow, do your research and hopefully this little nest egg will develop over time.
Featured Image Credit: PixabayTopics: Australia