NOTICE: As we continue to balance our role as an essential service provider with the health of our employees and members, the ability to staff all of our branches is sometimes impacted. Our Milpitas, Palo Alto, San Francisco, and Sunnyvale branches will be temporarily closed effective December 2nd. As more members opt for non-face-to-face interactions, you may experience longer hold times when calling our Member Contact Center. We apologize for this inconvenience. Click here for open branch locations and hours.

  • Investing Truths

    Investing Truths

    Some investment principles to keep in mind

    Investing in the stock market isn’t difficult. Unless you make it that way. The simple truth behind investing is that you can do it and be successful if you just follow a few guidelines along the way. Let’s review some tried-and-true investment principles.

    Know The Advice

    You should avoid taking stock tips from people whose investment success is an unknown. Everyone has that friend who seemingly knows of the “next hot stock,” but rarely is that person correct. As USA Today reports, casually buying stock because some random person (or even that friend) suggests doing so is gambling, not investing.

    What is Recent is Not Forever

    Don’t fall victim to what’s called the “recency effect” — the tendency to assume that the most recent trend will continue forever — when you invest. Keep in mind that if the stock market is weak, it will eventually return to the mean. If the market is strong, it will do the same thing.

    Patience is a Virtue

    The best investors buy stock with the long-term in mind. You need to stay calm and patient during the rough times. Know that the big picture is the key. The market goes up and it goes down. It’s important to stay the course if you want to eventually reap the rewards.

    Go Slowly

    Finally, take your time when investing. Consider using “dollar-cost averaging” to slowly build your portfolio. This strategy involves investing a set amount at regular intervals. You buy more shares when the stock price declines, and less shares when the stock price rises. Over time, it averages out.

    Back to Blog

    Leave a Comment


    characters remaining


Give us a call

Give Us a Call

We look forward to chatting with you.

(800) 553-0880

For new loan related inquiries, call

(877) 988-0471

View Our Contact Info
Visit Us In Person

Visit Us in Person

We’re here to serve your needs in person at our San Jose Headquarters. Visit us at 2010 N. First Street, San Jose, CA 95131.
Get Directions
More Information

Want More Info?

Interested in learning more about all we have to offer? Receive personal finance tips along with emails focused on key topics. You can even sign up for our monthly newsletter.
Request More Information