What is the biggest lesson you have learned as a stock investor?


What is the biggest lesson you have learned as a stock investor?

I must confessed that I have a sceptical attitude and reservation before I started investing in the stock market. In addition to substantial risks or volatility, stock market investing is exclusively for expert business people.
It must be daunting as it requires extensive financial knowledge and experience.
However, the truth is even an ordinary person like you and me can participate in the stock market.
What makes the difference?
Simple.
Two years ago, I put my money in SBI. Today, instead of keeping the money in the bank, I bought stocks from SBI. I am now a shareholder of the company. This is the difference.
I must say stock market investing is a great learning experience.
So, let me share with you what I have learned from my personal investment journey in the stock market. If you have been investing for long, I’m sure you can add some on the list.
1. Be patient
When you see a lot of reds in your portfolio, sometimes it can drain your brain and emotion.
However, when the stocks are down, you can't do anything about it. This is beyond your control. You need to see the value of patience and learn to ride the ups and downs of the stock market. You just need to have patience and keeps investing regularly no matter what.
2. Understand the value of time
As a newbie investor, I have seen the value of time in investing. Once you realized how precious time is, you wouldn’t waste it. If I have known this ahead of time, I would have started my journey into the market sooner.
In my opinion, procrastination is one of the greatest enemies of achieving your financial goal. So, use your time wisely.
The value of compounding interest is a great wonder of the world as what Albert Einstein said. Over time, you will reap what you have planted a long time ago. If you have not yet started investing in the stock market, I hope you would begin in 2020 as time is so precious.
3. Find a great mentor
They say an investment in knowledge pays the best interest. In every endeavor you do, there is wisdom in finding a mentor and educate yourself before you do investing.
As for me, Book Intelligent Investor is a great mentor when it comes to financial education.
In addition, I don’t have to worry and look at trades all the time. While other traders and investors are worrying so much during this crisis, I am confident and secure that my mentor will remind me that crisis is a great opportunity to earn more.
4. Learn to manage risks
Every investment opportunities has potential risks involved. Whether you have saved money in the bank, or you have invested in mutual funds and stock market, investment is always associated with certain level of risk.
While stocks investing involves volatility, the truth is that if it is managed properly, you will surely gain potential returns in the long run. Risk and Reward are the two sides of a coin.
5. Have discipline
Many times I was tempted to spend my hard-earned money with things that are not necessaries. Discipline is important for you to develop the habit of investing.
But when you start investing, you started to look beyond the present. With discipline and consistency, it is not surprising to reach your first 6-digits investment in one year. However, you need to discipline yourself and be consistent of funding your online portfolio to achieve your financial goals.
Here is a summary of the learnings from my experience:
  1. Be patient
  2. Understand the value of time, soon the better
  3. Find a great mentor
  4. Learn how to manage risks, in real life and stock market
  5. Have discipline in your life.

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