My first experience investing was back in 2008. Well before I had any experience in the area and also before I gain my educational credentials. I had just always been curious about the getting involved and learning the craft. With nothing more than my gut instincts and $600, I turned that initial investment into $3600. That was a $3,000 profit, an 500% Return on Investment. Quite Investment for a bounce in the investing game.
But I’ve had plenty of losses since that first big win with my initial trade. I saw a $1500 Investment into Yahoo over the years turn into pennies on the dollars. There will an ill time investment in one of the biggest three automobile company back in 2011, that made $800 a wash. I could go on and on about several small trade across sectors and big name brands you can imagine. A lot of time those losses have been extremely painful and cared a consequence bigger than just the money loss on the market trades. BUT YET I SURVIVED.
Most people have this unrealistic notion about investing that they’re either always going to win because they can time the market to ride only a upward trend, or they will never trade again if they experience one loss trade. But of those ways of thinking are very flawed. Not even the most accomplished of investing Oracles have always nailed the trade. Warren Buffet misses on a lot of technology brands and has openly admitted it. Money mavens like Carl Icahn has missed managed trade that should have been the Crown Jewels of their resumes. But you saw neither of them cash out their chips and go home.
My thinking on the matter, if you can suffer thru the pain, you don’t deserve the enjoyment and the financial windfall of the wins. The losses teach you strategy and the ability to pivot tactically without getting wrapped up in the emotional reactions of it all. We have just experience two of the most contrast years I’ve seen in all my years in the market. In 2017, it was all rainbows and green arrows, the market couldn’t buy a steady flow of losses. All was right and good on the market everyone was a rock start. And then came 2018, full of volatility, uncertainty, and no good news was even perceived as good news. But each market required a steady hand to endure and manage the ebbs and flows with the maximum amount of profit and the least amount of losses.
I say this to say stop thinking you can enjoy all the roses without the thorns. You will suffer scars and cuts, pain and agony; but it will be temporary if you choose to take each lump as a opportunity. There is not straight up staircase to financial literacy and freedom. It is a long road that will include many slips, trembles, and near off the cliff moments, but if you hold tight to your long term goals in the end you’ll make out far better than you started off.
Jamaal W Vetose
Todd Capital Investment