Investing takes patience. It also takes a mindset.
You hear about your friend’s big investment win. You see the car he bought or the trip she took, claiming it was from some hot stock pick. How do you react?
Do you start to doubt your strategy? Do you fear you’re losing in some way?
When you feel this doubt, look at your lifetime returns.
Has it risen? Has it fallen?
Take note, but just know the only way you can lose is if you sell. It’s at that point, you either lock in a loss or prevent your money from compounding further.
In fact, when your friend says they won through a hot stock pick, know that they’ve in fact lost.
They sold out far too early, ignoring the impact compounding could have had. While they gloat, you will get the chance to watch your money grow.
And if you’re investing for your long-term goals, by staying in, you’re winning.