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Last Tips & Tricks

Patience is a virtue for investors

Stock investing tips by Mike Langevin

One of the biggest weaknesses investors have is that they still believe that the stock market is a way to get rich quick. In other words, investors lack patience.

For short-term investments you must have certain skills and experience. Investors should be ready to respond to short-term fluctuations and be mentally prepared to react quickly, whether to buy or   sell. However I do not think the majority of investors have the necessary skills to perform consistently while trying to take advantage of fast movements. Nobody has the knowledge to tell us when the markets will swing, either up or down. I do understand the excitement when one makes a quick gain, however this is quite a feat for most investors.

Many investors with short-term expectations witnessed their capital disappear completely during the financial crisis that crushed the market in 2008 until early 2009, and I am afraid that many of these investors had to leave the market with no new capital to take advantage of the great opportunities that this correction provided. Will they return? Probably, but when prices are significantly more expensive.

Investors with longer-term expectations were also greatly affected by the major correction in 2008, but if they were confident that they bought sound investments, they would have kept them and now as the market has recovered strongly since then, they would have now recovered all or almost all of their paper losses.

Patience is one of the most important qualities that an investor needs. It is true that it is not always easy to watch as one of our stocks crumble , all the more reason why patience is essential for a successful investor


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