Investments - More to it than meets the eye .
In the beginning of last year Meta experienced a massive drop in stock value when in one day there was a 230 billion dollar wipeout. I remember just a short period of time before this happened Meta still traded at around the $331 mark and then suddenly stock dropped to around $237 a stock.
That is when I decided to buy Meta stock, never realising that things are gonna become so crazy that Meta will eventually fall as low as around the $80 mark. To say the least, I was utterly shocked and could never have imagined this would ever happen.
There were then big debates whether those (including myself) that bought during that time made a massive mistake.
Well, looking at Meta stock now it is trading at $305 a stock and just a couple of weeks ago at around $312 a stock.
So what is the point I am trying to make? It may seem at the time that you have made a bad decision, but if you invest in big players you will seldom go wrong. If stocks go down, just keep them, because if it is a big player on the stock market (good quality stock) then eventually over time it must go up and will go up and is likely to recover to that level where it was before the stock crashed.
So when it comes to investing in stocks there is certainly more to it than meets the eye, so don't be too quick to come to a conclusion in terms of whether you made a good or bad investment, as time will tell.
Disclosure: I am not giving any financial advice or investment advice here at all as I am not a financial adviser or professional stock broker :) I am just giving you my two cents when it comes to my own conclusion on how to think about your investment in stocks, as to not be too quick to come to a conclusion regarding your investment success or failure. Do remember though that although investing in stocks can be very lucrative indeed as we all know, it can also be very risky indeed.
Wishing you all the very best of success!
Schalk
Recent Comments
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Hello Schalk, thanks for sharing your point of view!
I think stocks is interesting and it is something that one needs to keep a close watch and to understand the reasons of rises and falls in values of companies.
Kind regards
Erica
Erica, stocks can indeed be risky but stocks caught my eye after I saw a close friend's stock portfolio and the insane amount of money he made in a very short time in stocks.
He only started to trade during the pandemic. I can kick myself that I never traded during the pandemic. Was an absolute no brainer and a gold mine.
My friend however always warns me - stocks can be very risky too so you have to of course do your homework very well. Is a calculated gamble as the unpredictable sometimes do happen.
Thanks Schalk, yes I imagine it is an exciting and sometimes nervous venture, but as you say when you study it well, I am sure you can do well.
Really everything is a gamble in this life, nothing is really guaranteed, even the so called secure job.
All the best
Erica
Thanks for sharing your experience. Dealing in stocks can be super risky depending on the company. It's always best to do your due diligence beforehand and only invest what you can afford to safely lose. Good luck with your stocks!
Susan
Schalk, thanks for sharing your experience with investment with stocks. Interesting. I am not involved with that but I do understand how it works.
Can be risky but very lucrative too. It caught my eye after I saw the crazy amounts of money a close friend of mine made with stocks during the pandemic. Can kick myself that I did not invest during the pandemic, as was an absolute no brainer and very easy to predict what was going to happen in the stock markets.
Now it is less easy and thorough homework needs to be done before investing.
It is still a gamble so important to only invest what you can afford to lose.
Brenda, maybe me stating gambling was a bit strong, maybe calculated risks are a lot more accurate.
Despite some risk I believe many financial advisors will recommend investing in stocks as a good and sensible way of accumulating wealth. You need to do your homework though and make sure you don't put all your eggs in one basket.
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Hi Schalk.
Interesting to read your experience.
Investing in stocks is definitely a sensible strategy but investing in individual stocks is very risky.
Personally I prefer investing in index funds to spread my investments across a range of stocks.
Good luck with your investing.
Dave
Thanks Dave. I am pretty new to investing so will go read up more about index funds. Thanks for the heads up :) I got a lot to learn when it comes to investing in stocks.