You can be the best stock picker on the planet Earth. But if you don’t have the right temperament you will fail as an investor.
Let me explain…
What happens when you buy a stock at $30, and it immediately goes to $25 or even $15? How you respond will dictate how successful you are as an investor.
Case in point: Two weeks ago my personal IRA was getting hammered due to all of the trade war talks. Today, Jerome Powell, the head of the Federal Reserve, testified before the Senate that the Fed would gradually continue to raise interest rates. The market took off. My account is now almost back where it was before the sell-off took place.
We are going to experience many more market downturns. What you have to remember is that the market will eventually bounce back. It always has and always will.
One of the best things you can do as an investor is to never sell your holdings. Of course, I don’t mean “never in life”…but I do mean “never, for the foreseeable future”.
Interested in more investing basics like this? Know someone who could benefit from them? Please check out my book, The Stock Market is For Everyone. I am also available for consultation – please click here for info.
Here’s to your wealth!