I started trading on eToro on 26 June 2018 without much knowledge about trading. However, I did not realize how dangerous it is to start trading with real money without much research since I only know basic knowledge about stocks without even know what is short selling. I was so impatient to practice using the virtual profile, I stubbornly straight starting my trading using the real profile after few days I registered.
Guess what! I started to earn some money by trading in crytocurrencies and commodities. Of course, it is all by luck and this made me more excited to put in more money. Luck never last long; soon, I started to put my portfolio in red. I started to lose my attention on what I should do daily, getting stuck in this gambling game. I started to lose interest in my study and I had the strong urge to check the price from time to time, having emotional stress when the price went down. Luckily, I managed to withdraw myself from this wrong concept of investing, getting green again in my portfolio.
What I did is I was betting the price to go up or go down, it was just merely gambling, and I naively thought that it was investing. When the price goes up, I buy; when the price goes down, I sell. But in fact, this is totally wrong in the view of “value investing”. I will discuss more regarding “value investing” in my coming post “MUST KNOW” Tips in Stocks Trading — Value Investing.
Another mistake that I did is I put in more capital into risk when the price keep going down since I never set stop loss. This could make me keep losing more but luckily it didn’t happen before I learnt my lesson.
Invest but not gamble. Buying stocks is like owning part of a company that you believe in, what you buy is not just the stock price, what you earn is not just the difference in stock price.