As a long-term investor, I tend to stay away from consistently day trading. I find that it usually ends in a loss because at the end of the day, you are a calculated gambler. This semester while in quarantine, I found myself day trading way too much. Getting into riskier positions and putting more at stake. I spent 2 months doing this and was able to come out with a sizable profit. All of a sudden, all my good luck (skilled strategies) had took a turn for the worse. I had a super red week that nearly wiped 2 months of gains. I stayed in positions too long (hours instead of minutes) and didn’t cut losses. This brought me back to the reality that my original thoughts on day trading had been correct, and that long-term investing was the best way to consistently make money in the stock market. It also taught me the importance of sticking with the strategies that work, and not letting emotions get the better of you. I took this loss/failure as a redirector that put me back on the right track. While some may see this as me quitting at the sign of loss, I see it as a teaching moment that I should stay true to what I know. This class has reiterated my belief that without failure, nothing is possible. It is what keeps us learning and growing, not only in business but in life. I have always been a person that takes calculated risks, so I believe this class has only confirmed the idea that failure is ok as long as you learn from it.
Hi Erick!
ReplyDeleteI agree with your statement that failure is functional when you learn from it. I would argue that you can learn from almost every failure, no matter the degree. There is always an opportunity to gain never before insight, whether altering your habits or just telling you to go in the other direction. Failure is only bad when we let it define us and stop us from pursuing other options.
Hey Erick, I am an investor as well and I can completely agree with your situation. When I started investing in January, I started by day trading but after corona hit, I decided to stop risking my money and decided to start investing for long term wealth. When it comes to the market, it is so volatile and unpredictable that its better to invest in what you know than to risk your money every day.
ReplyDeleteHi Erick!
ReplyDeleteI agree with your statement that you can always learn from your failures. I also agree with sticking to strategies that work instead of letting your emotions make your decisions for you. I just started investing and because the shares were low priced I bought a lot from a company and now they have decreases by 20% and I lost almost all of my money. I did not do enough research on the company before investing and now that I know the right strategies I can re invest in a smarter company and hopefully gain my money back. You cannot let failure keep you from pursuing your options.