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"I'd be panic buying / selling every day to adjust which seems stressful..." Wrong way to invest. Don't buy an individual company's stock unless you are ready
by betterunix2 9y ago
"I'd be panic buying / selling every day to adjust which seems stressful..."
Wrong way to invest. Don't buy an individual company's stock unless you are ready to (1) hold for the long-term and (2) ignore (short-term) unrealized losses. Especially in the first year after investing in an individual stock it is typical to see an unrealized loss, because gains require time to accumulate.
The stock market is not a slot machine. Investing requires patience and discipline.
- astrange 9y agoThere's no particular reason any random company's stock should have gains over time, aside from inflation. Especially if it doesn't give dividends, you may never gain anything.
- betterunix2 9y agoNothing is certain, but you can sort companies into "likely to gain" and "unlikely to gain." The P/E and P/CF ratios are commonly used for this, along with other valuation metrics. The basic theory of value investing is to find companies that are likely to give you a return. Also, historically the stock market as a whole has outpaced inflation, so even just investing in randomly chosen companies should have gains over time (there is even evidence that a portfolio of randomly chosen companies performs about the same as a portfolio of companies chosen by analysts and advisers).