Diversify your investment portfolio. Investing in all asset classes-stocks, bonds and cash equivalents-reduces risk and, over the long-term, increases the potential for higher returns. Proper asset allocation (how much you invest in each asset category) is crucial to achieving your financial goals with peace of mind. While every portfolio will hold a poor performer from time to time, it's the overall return of all your investments within your portfolio that's important. Over the long haul, holding a diversified portfolio that meets your investment time horizon, risk tolerance, and goals is an excellent strategy for most investors.

Don't try to time the market. None of us can see into the future. If we could, we would all be wealthy. One thing we do know for certain is that markets will continue to go up and down and not necessarily in that order. Trying to time the market can be a recipe for disaster and can result in lasting damage to one's investment goals. Remember, a good asset allocation strategy works in both bull and bear markets and, while it can't eliminate the latter, it can minimize its effects.

Focus on your long-term financial plan. A well-defined plan is your roadmap to achieving your financial goals. Focusing on it, regardless of short-term market fluctuations, is the key to your long-term success.

Diversifying your portfolio, staying calm and making rational decisions that focus on your long-term plan can help you get closer to reaching your investing goals - whatever the markets are doing.

Read Ranga Chand's full article, Staying Focused and Building Portfolio Momentum in Bull and Bear Markets