So often do we hear horror stories of investors losing massive sums of hard-earned money in the stock market, as a matter of fact, that’s probably why many are afraid of even entering the market in the first place. Those horror stories, I assure you, are very real. However, they are most likely due to a lack of patience on the investors’ part.
Being impatient in a market causes many investors to panic, upon seeing their owned share prices drop, they make an emotional decision to sell. On paper, that’s not too bad, the issue is that there’s actually a massive snowball effect. When more investors decide to sell, the share price gets artificially deflated drastically, resulting in even more people panicking, believing the world as they know it is ending.
Those investors are not patient, if you made an educated, logical, long-term investment, you must remember why you made that investment. If there isn’t a legitimate reason the stock price would plummet, then it’s not a permanent drop in price. Stick to your reasoning. Of course, if there is a reason the stock price would drop drastically in the long term, exiting may not be such a bad idea.
Note that mistakes and miscalculations do happen, this is not by any means investment advice. It’s just a different perspective on investments.
If you’re interested in starting your journey to financial independence and success, I highly recommend picking up Rich Dad Poor Dad, here’s an affiliate link to purchase it on Amazon, you would be supporting me too!
Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not!
If you’d want to learn more about achieving goals and fighting a lack of motivation, I highly recommend Grant Cardone’s The 10X rule, please feel free to purchase it using this Amazon affiliate link in order to support me as well!
The 10X Rule: The Only Difference Between Success and Failure