The truth about investing
So for those who are still considering or who have just started dabbling in the stock market, here are some truths about it.
The ups and downs
As many of you might now by now, stocks fluctuate, the prices of commodities go up and down due to changes in market demand, news, politics and a whole lot of other reasons. This is inevitable, stocks that only increase or only decrease are mostly non existent. Due to this aspect the biggest asset a investor can have is patience. If you have done your research and you are content that the stock you are buying will grow then you need to sit out the rough storms and wait for it to pass. This will allow prevent you from panic selling and thus losing money.
As a investor it is common to feel scared or anxious about losing money, especially in the start of your investing journey, this is probably where I lost the majority of my money. But with time and experience you'll realise that this is part of the market and that it will eventually regain it's value.
Making money
As with all investors there are good days and there are bad days, especially in the day-trading side of investing. In this industry perseverance is key, you'll have days where you lose money and you'll have days when you make money, but at the end of the day, it is key to remain net positive. You as an investor should not become demotivated by your loses but rather have you loses motivate you and improve your trading skills. They should push you towards becoming better and making more profits.
Perfection
Looking at trading charts, seeing the highes and the low, the perfect places for entry and exit, but in reality it is basically impossible to catch a stock at the perfect entry or exit point. You can use all the analysis you want but sometimes you'll miss the final dip or the final spike. As a famous investor once said, "just because the a stock price is diving doesn't mean it'll stop diving once you buy", and the same goes for a stock price spike. The only way to mitigate this is not to go all in or all out, sell or buy 50% of your investment and see what the stock does afterwards and then decide if you should buy/sell the other 50%.