Investing. One word, but so many meanings and ideas, us humans have associated with it. It can feel like stepping into a world that is full of excitement, uncertainty, and endless possibilities. Just six months ago, I was a nervous beginner, hesitating over every single decision as well as second guessing myself at every turn. Today, I am proud to say that I’ve grown into a somewhat more confident and informed investor. I still have a long way to go, but I have certainly grown from the anxious investor that I was in summer 2024. The journey has not been without its challenges, but the lessons I have learned along the way have been invaluable. Here, my elegant explorers, we will look back at what these six months have taught me.
Disclosure: This post may contain affiliate links, which means we may receive a commission if you click a link and purchase something that we have recommended. While clicking these links won't cost you any extra money, they will help us keep this site up and running. Thank you for your support!
Lesson 1: Embracing Market Ups and Downs
When I started investing, I was a more excited “noob” rather than anything. I was not prepared at all for how emotionally taxing market fluctuations could be. Watching the value of my portfolio drop during my first bear market (near the end of August 2024) was so nerve-wracking. I remember panicking and wanting to sell off everything to cut my losses and retrieve what was left. “Better that than to lose everything”, I said to myself. At the same time, fear held me back from buying stocks that were, in hindsight, incredible opportunities. Because trust me, once you’ve been in the market for a while, those red days are not considered stressful days, but rather “sale” days. Sadly, I had no idea back then.
Take NVIDIA, for instance. By end of august 2024, its stock dipped below $100. I hesitated, unsure if the dip would continue, and ultimately missed out. After all this time, now when I think of it, I get sad. The same happened with Tesla, and even Bitcoin, which fell to as low as $77K.
Looking back, these moments were very crucial in teaching me a critical lesson, market ups and downs are inevitable, but they shouldn’t dictate your decision.
With time, I have learned to view the red days as sale opportunities rather than opportunities of panic. It just a matter of perception and shifting that has helped me stay calm and make better choices. Instead of reacting emotionally, I have started to focus on the bigger picture.
Lesson 2: The Power of DCA and Lump-Sum Investing
One of the most practical strategies I’ve adopted is Dollar-Cost Averaging (DCA). By investing a fixed amount at regular intervals, I have been able to reduce the impact of market volatility on my portfolio. It’s a great strategy that has brought consistency to my investing habits and made the process less overwhelming.
That said, I have also learned the value of lump-sum investing, in certain situations, when the bear market and my finances coordinate accordingly. For example, when a stock I’ve been researching drops to an attractive, making a large, one-time investment can be a smart move. Finding the right balance between these two approaches has been key to my continuous growth as an investor.
Lesson 3: Due Diligence Matters
In the beginning, I was really into the “hype” and followed the crowd, investing in companies that were trending on social media. But I quickly realized, that this approach could lead to poor decisions, and sometimes to regretful ones. No matter how popular a company is, doing your own research is crucial.
Understanding key financial metrics, such as price-to-earnings (P/E) ration, earnings reports, and revenue growth has become a non-negotiable part of my process. In some cases, researching has reinforced my confidence in a company, helping stay steady during market dips. It’s also helped me avoid overvalued stocks that might look appealing at first but lack strong fundamentals.
Lesson 4: ETFs for Beginners
As a beginner, the idea of choosing individuals stocks was intimidating. I found that for a single stock, it was too costly, and if its a USD stock, it’s even more expensive after the conversion. Buying a few shares would drain my bank and I would be holding only one stock, which made my risk exposure very high. That’s when I discovered ETFs (Exchange-Traded Funds). These funds allows you to invest in multiple stocks/assets, reducing the risk associated with putting all your money into a single company.
For anyone that is just starting out, ETFs can be a great way to gain exposure to the market without the stress of constant monitoring. They’ve been such a helpful addition to my portfolio, especially during times when I’ve felt uncertain about individual stocks.
Lesson 5: Investing vs Gambling
For years, one of the biggest misconceptions I had about investing was that it was similar to gambling. It’s easy to get caught up in the hype, especially when social media is flooded with stories of people making quick fortunes, or investing gurus that seem to know it all and have cracked the market. However, these last few months, I have learned that successful investing requires lots of patience, research and a long-term perspective.
Ive since then stopped chasing trends and started focusing on companies I believe in. This shift has not only made me a more thoughtful investor but it also helped me avoid expensive mistakes. Invest your money into companies you believe in and not in companies that are currently trending on social medias. As I have come to realize, investing is about building wealth over time - and not about trying to get rich overnight.
My Experience with Crypto
Although my main focus has been on stocks, I’ve also dipped my toes into the famous world of cryptocurrency. Evidently, crypto’s volatility had me stressing on some days. It is definitely more than intimidating. Through that, it has taught me valuable lessons about risk management. For example, while meme coins can sometimes bring quick gains, they are incredibly risky and not reliable for long-term investments.
Instead, I’ve started focusing on coins with strong fundamentals and have inflation-resistant potential. Coins like, Bitcoin and Ethereum, for example, have use cases that make them more stable compared to speculative assets. If you’re considering crypto, its very important to understand what you’re investing in and avoid putting money into projects coins simply because they’re trending (for instant, the TRUMP coin currently). More will be discussed in a blog post focused on crypto.
For those interested in starting with crypto, and are still new to it, I highly suggest the following 2 platforms:
ShakePay: This app is Canadian and beginner friendly! It only supports two coins, Bitcoin and Ethereum. And it has an amazing perk: You earn free Bitcoin daily just by shaking your phone! (Also known as the “ShakingSats” feature). It’s a very fun and easy way to build Bitcoin over time. If you keep up with a streak, the more you’ll earn everyday. Click here if you want to get started!
Newton: Known for its low fees in all of Canada, Newton makes trading affordable and transparent. If minimizing costs is your priority, Newton is a great option, trading over 70 cryptocurrencies. Click here if you want to get started!
My Investing Platform
As for investing in the stock market, I’ve been trading in my TFSA through Wealthsimple and it has been such a smooth and fantastic experience. It’s a very seamless experience, you don’t pay any commission on your trades and is very beginner friendly. They offer different types of accounts, such as TFSA, RRAP, RESP, LIRA, High interest savings account and so much more. If you want to begin your investing journey and want to secure your future, click this link.
Recommenced Reading
Aside internet searches and Youtube and TikTok videos, books have played a very significant role in shaping my understanding of investing. Here are some books I believe every one should read at least once I their life if they want to gain financial literacy and independence:
The Intelligent Investor by Benjamin Graham: A timeless guide to value investing.
A Random Walk Down Wall Street by Burton G. Malkiel: Perfect for beginners who want to understand market trends.
The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns by John C Boogle: A deep dive into identifying great companies.
These books, along with others, have provided me with valuable insights and practical strategies.
Now that I look back to the last six months of my investing journey, I’m amazed at how much I’ve learned and grown. Ive gone from being a nervous investor to someone who can navigate market ups and downs with their feelings put aside. Ive learned to embrace volatility, value research, and approach investing with a long-term mindset.
For anyone who is just starting out, my biggest advice is to stay consistent and patient - very patient. The market will have its ups and downs, but history shows that it always rises back up stronger. After rainy days, the sun does shine again.
Digital Explorers, investing is a journey, and every step - no matter how small - brings you closer to your goals. So, take the first step, and trust the process, you wont regret.