Final answer:
To reduce anxiety in stock investment decisions, it's important to A. monitor economic trends and thoroughly D. evaluate investments, but holding stocks short-term for high returns is ill-advised. Diversification is key for long-term investment stability.
Step-by-step explanation:
To reduce anxiety when making stock investment decisions, several strategies can be employed. Monitoring economic developments, tracking the firm's product line, evaluating each investment, and analyzing the firm's finances are all prudent practices. However, holding stocks for a short time with the expectation of achieving above average returns is not advisable. This short-term trading approach does not align with the recommendations for long-term investment and the benefits of diversification.
According to financial evidence, it is challenging for investors, including professionals, to consistently outperform the market. Furthermore, attempting to pick stocks that will significantly gain in value is a risky strategy and unlikely to lead to wealth. Investment diversification, or spreading investments across a wide range of companies, is commonly recommended to mitigate risk and avoid the negative impacts of any one company's performance on the overall portfolio.