The biggest questions which a lots of beginners in the investing field have. What to know the secret ? Sure you do.
The secret number #1 is that investing in stocks is for the long-term no matter if you are earning money or losing it. But of course there are much more to it than just this.
The whole key to making money from investing lies in the stock market itself. Another key is also your patience and how much you wait.
There are dozens and dozens of investors who bail out way too soon, this makes the stock market for that specific stock go down. Which makes it harder for the stock owners of that specific stock to earn money from investing in that specific stock. Does it make sense? Lets hope so.
The whole clue here is about too many investors doesn’t staying investing for long enough. The clue with investing is to not follow the crowd and what people on TV or internet because they cant predict the future the same way as me and you cant. A good example to this is when investing experts couple of years ago was talking that investing in Tesla Motors will be a stupid idea. Well look at Tesla Motors and their stocks now, it doesn’t look a stupid idea to me at least. (I got you Tesla and Mr. Musk).
What I’m trying to say is that you should use your own gut feeling and brain to make a judgment and to invest for the long run not for the short run. When it comes to investing be patient and need to be able to handle roller coasters of stocks going up and down fast. The reason behind this is that good companies tend to increase their profits over time. And the reward for investors who are there for the longer run is of course greater earnings with a higher stock price.
The higher price when it comes to stocks and investing in general means a return for investors who own the stock. Which we want a lot, don’t we?
The whole point with being patient when it comes to investing is about not knowing where stocks will go in a week, moth and a year. The whole idea is also that more time equals with more opportunity for your investments to go up. But with being patient you risk to also loos a lots of cash.
However the idea with losing a lots of cash goes back to not investing more than you can afford to lose. Try to invest a small piece of your income. I would recommend to invest around 10-20 % of your monthly income but in the end you are the one who decided. You can invest less than 10 % if you want and you can invest more than 20% if you want. Its all up to you, but never forget to NOT invest more than you can afford to lose.
If you are one of these people who makes excuses like “I’ll wait until the stock market is safe to invest”, you have to know that the stock market will never be 100% safe to invest. There is always risk of losing money.
The best time to invest will not be tomorrow, next week, next month or next year. The best time to invest was yesterday and the next best time to invest is today.
However there is one good method to decrees the risk of losing money. And that good method is to invest in good companies like Asensus Surgical Inc, Tesla Motors, Amazon, Apple and Berkshire Hathaway. There are hundreds and hundreds of companies who are also on the level with these listed.
If you are afraid to lose money, then you have to know that even the best investors like Warren Buffet loses their money at some point in time. But here is the thing with money, you can always earn it back. And losing money is a much better teacher to investing than earning money is.