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Stock market is a pretty huge field. As such, I am still a neophyte in it. Truth be told, I am still reading materials and soliciting more information from the pros. However, in spite of my current state, I already have a lot of lessons that I would want to share with my current stock market experience. I am sure that those who have been doing this for the longest time will have a long list of life lessons as compared to mine. Nonetheless here are some of the lessons I’ve learned so far.
Time Is Gold
This phrase makes really a lot of sense especially with regards to stock marketing investing. Even more, this can be your ally or your foe depending on your position. However, if you are keen towards long term investment this can be your friend. Even more, timing is everything with regards to stock market trading. You may be able to buy a stock that would generate huge returns in a day only to find out that it would dwindle down the following day. Even more, we cannot amplify and hasten results with regards to stock market. Aside from the time, we must also have the right amount of patience that will go with it.
Control Your Emotions
The effect of a circumstance can be different in accordance to the kind of emotion we project. This also holds true for stock market. Whenever I would see a company going up, there is that tendency of greed to not let go of it even if my desired price is met. Then I found out the following day that the price has collapsed drastically. Then I fear on the price hence I withdraw. In stock market trading, don’t let your emotions control you. Don’t be greedy. Oftentimes the worst mistake of individuals in the said arena is when they let their emotions cloud their decisions. This is also true in life. If we are occupied with emotions, we say hurtful things then we regret it after.
The World Is Round
Stock market trading is not always a series of ups. It is a cycle, it is a wheel. A company stock can skyrocket today then it will fall tomorrow. In order to maximize your gain, you just have to know when to release it in accordance to your goals in the first place. Hence, do not worry if a stock in your portfolio is red. For sure in the coming months or years, it will see the light of day and it will improve. However, be careful on the stocks that increase drastically. You can never tell when it will slowly go down. Just be in your toes and be ready to let go.
Don’t Stop Learning
Be a student of life and don’t stop learning, most especially with regards to stock market. If you bought shares of a certain company, make sure to learn more about it. Don’t just settle with its price and history. Look for related news and such. And don’t stop learning about the market. Read more about it. Don’t just settle on the Philippine market. This is affected after all by international markets as well.
Learn From Your Mistakes
In a way or another, you will commit mistakes here. You fill find yourself in the position of buying a stock that is losing in your portfolio. You may end up losing money in the process. But, let this be a tool for knowledge and learning. So that when you trade next time, you would be smarter and wiser. Losing money is indeed hurtful. However, you can always gain it back provided that you play your cards right next time. Stock market would always give us a chance. Just make sure to never commit those mistakes again in the future. So when you stumble and fall, get up, dust the dirt and do it all over again.
There are other things that the stock market can teach us that we can directly relate with life. I must say that since I got into stock market, I have improved a lot especially with my values and principles. There is no denying that more than helping you earn, this will help you in any aspect of your life too.
P.S. My very first e-book is finally here. You can buy it using the Buy Now button at the right or via bank deposit. Only Php 150.00. Purchase your copy now.
P.P.S To those doing the 52 Week Money Challenge and 52 Week Money Challenge Version 2, it is Week 41 already! Did you deposit the next amount yet?
P.P.P.S Want to know more about investing, savings, stock market and more, check out my reference here. You can download free ebooks and resources too.
P.P.S To those doing the 52 Week Money Challenge and 52 Week Money Challenge Version 2, it is Week 41 already! Did you deposit the next amount yet?
P.P.P.S Want to know more about investing, savings, stock market and more, check out my reference here. You can download free ebooks and resources too.