There's the common misconception that the stock market is a place whereby wealth is made, and made abundantly. While that may be true, especially for those who managed to get in early (eg. $Tesla Motors(TSLA)$ just a few years ago) for the majority of us, the stock market is a place whereby wealth is preserved, and we, as stewards of the assets placed within our hands, learn many lessons both about managing these said assets, and about ourselves.
I myself am one who was lured into the world of stocks, wanting to make as much money in as little time as possible. Scouring threads such as r/wallstreetbets (don't do it!), stocktwits (arguably worse) and watching finfluencers (not all are bad I must say!) for the next alpha to buy, I was hooked. Then came the truth, and in a crushing blow, I lost everything I had (read: I was 18, and thankfully didn't have much) on a single Singapore listed REIT which I shall not mention (something about birds and hospitality trust). I was devastated.
However, it is from these darkest of pits, the blackest of ashes, whereby the phoenix arises. I sought to not let this go to waste, and instead, learn my uptmost from this episode.
Diversification. Risk management. Stop losses. All terms we are familiar with. I realised that it was not that I did not know these - the problem was that I did not know myself. A lack of self control often got the better of me, leading me to take riskier bets than what my rational brain would be comfortable with. Greed often pushed me to want more, instead of being content with the portion which I have been given, leading to losses despite being given the opportunity to make gains. Pride refused to let me back down from a position which I had committed to, leading me to fail to see that tides have turned.
Coming out from national service (and many side hustles) gave me the chance and capital to restart my investment journey. These past decade or so of investing taught me much, and I must say that, despite the early start that I had, after accounting for inflation and all, I haven't really made any tangible gains worth the time invested at all. However, it is the lessons that I've learnt in the stock market that is my biggest takeaway from my investment journey.
Investing taught me patience, humility and resilience.
Investment taught me to face my fears with courage.
Investment taught me to sit out and not cave to FOMO, that there always is another day to prove myself.
Above all, investment taught me that the nights that I've sacrificed, looking up stocks, reading about economies, trading for gains - all would be naught if I forgot what I was investing for.
Yes my friends, remember your families, for whom you're investing for to provide a better life. Remember your friends, who jios you out for drinks, to check in with you about your life. Remember that investment isn't everything.
Small or big, profit is profit. Make hay while the sun's up, and store hay while it remains up. Making too much hay without storing them could lead to disasterous consequences, especially when the floodwaters come. And don't forget that the hay is meant for your livestock.
And with that, happy holidays, blessed thanksgiving, merry christmas and have a happy new year!
Comments