In general, we will face problems when we are investing in the stock market. These problems might sometimes seem overwhelming because we might not be able to attach a logical explanation to the situation of the market. Recently, there are also similar occurrences that gave me such a feeling. Basically, I was stuck because the prices of some stocks were free falling without any foreseeable end to it. At that time, I recall feeling the pain of not knowing when this hellish nightmare will end and if I should continue executing my strategies or should I just let it be. In the end, I took a break from some of my portfolio constituents and focused on the rest. In this post, I am going to share those horrific experiences and how I feel when I look back from it today.
I felt like all signs of hope was gone
Those who are familiar with my blog understand that I am a strategist because my trading plan depends on ensuring that every subsequent move is logical and profitable. However, when prices are free falling, most strategies will not work especially when you do not know how low it could go. At the point, all that I could do was to endure until there is a turning point. Thankfully it came soon after the day I completely ignored that particular asset but that taught me a valuable lesson and that is to stay objective and not do anything out of impulse.
I tried to stay optimistic but there was no one I could turn to to talk about it
Sometimes talking to someone who has gone through similar situations in life might be the most useful thing to do during tough times. As a matter of fact, I did do so on several occasion with loved ones to share my worries and concerns. This will allow you to evaluate the situation and not allowing the matter to blow up in your own mind. I realise that talking to someone about it helps us to regain some objectivity and like I have mentioned before, we should never attribute present losses to sound strategies.
You learn a lot more about yourself during tough times
When your losses stack, it will be hard to justify why we even decided to invest in the first place. Investing is one of the few activities that entices people to join but at the same time give us very little reason to stay vested. Especially during tough times, when everything in your portfolio is running red, investors will most probably wish that they haven invested before. For me, I realise that no doubt the losses were significant, I was still keen on staying vested because I invest not solely for the profit but also for the purpose of accumulating resources to give back to society.
Closing thoughts
All in all, I hope that people realise that all investors will eventually go through a rough patch that makes them doubt their decision to become an investor. Perhaps it is only possible for an investor to reach greater heights if they survive the toughest moments in their investing journey.