When you submit an order to purchase your very first stock, I promise you that nothing earth-shattering will happen.
You may feel a sense of pride – in fact, I hope you do! You’ve taken the first step towards building wealth for yourself!
Other than that, though…it’ll be very anticlimactic.
So, if the stock immediately goes up or down, how should you respond?
If it goes up, don’t get elated.
If it goes down, don’t get deflated.
We are not concerned with the price a week or two after your purchase. What we care about is the price after three to five years. Investing is for the long-term.
Should you watch your stock every day? If you want. But it’s totally unnecessary. In fact, the less you watch it, the better it will be for your sanity.
Now…what if the price drops 50%?
Continue to hold, continue to watch. Don’t sell.
What if the stock doubles?
Watch, and hope it doubles again. SELL NOT A SHARE!!! You might feel very tempted to do so, and take the profit. But do not sell!
Buying and holding in these circumstances is how Warren Buffett made his fortune.
The truth of the matter is that for investors like us, owning stocks is pretty boring day to day. However…it can be quite eventful over time!
I look forward to you making that first stock purchase. I’d love it if you shared about it in the comments!
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