Investing is a long-term game. The stock market is no different when it comes to having a winning perspective.
Most of the stock market winners are the ones who are great with timing the market or the ones who spend the most time holding in the markets. Throughout the ups and downs, people are making and losing money.
We must understand the style of investing we’re getting ourselves into before buying or selling anything. I’ve had my fair share of mistakes, but I made sure to never let them happen again.
If I could turn back time, I would have never done the following.
- Sold 60,000 Dogecoin at 0.01 cents
- Sold 1 share of Tesla at $501 before the 4–1 split
- Sold 30 shares of Novavax at $41.
- Sold 68 shares of Penn National Gaming at $37.
- And many more.
To avoid making the same mistakes I did when I first started investing, just hold on tighter or add to your positions when you're down.
There are diamond hand investors and paper hand investors.
Diamond hand investors hold through the biggest of storms. They don’t panic when they see a -$100 statement on their investments. If anything they dollar-cost average and improve their positions.
What is the point of investing if you’re going to take a loss? This is something I had to tell myself several times before I finally understood it.
At the end of the day, if you’re walking away with more money than less, and your money is compounding, then you’re doing the right thing.
Most individuals who sell early or panic sell are the ones who despise investing and think it’s a casino-style way of losing your money.
The truth is, investing doesn't need to feel like a casino when you know what you’re signing yourself up for.
No one tells you that you need to invest in Tesla, Microsoft, or Apple.
That’s up to you. If there’s a $2 electric vehicle company that you’re bullish on, buy some. If it drops to $1, that’s no big deal. Just hold on, add more, and only if you lose complete faith in the product, get out.
Breaking even or getting out at a profit isn’t easy. Unless you’re patient.
Let’s all practice more patience and understand that the stock markets are cyclical. There’s market manipulation going on behind the scenes that are scaring away everyone on Robinhood or WeBull.
The less attention we pay to our investments, the more our investments will pay us.