🚀 Peaks and Valleys
What do mountains and stock charts all have in common?
Peaks and Valleys or High and Low points
An outcome resulting from any sort of change. Everybody has to experience both of these points in order to progress.
When you look at a mountain, ALL you think about is it’s enormous size or the distance separating you from it’s peak.
The journey to get to that peak isn’t a straightforward one by any means. You’ll be confronted by a variety of obstacles including;
Difficult terrain
Adverse weather
Mental and physical fatigue
Sounds less appealing now doesn’t it? Well here’s the thing.
To reach any peak, you must first start from the bottom.
You can’t just jump from one summit to another without traversing down and climbing back up again.
That’s the same with life.
The journey towards finding your purpose is this humongous mountain with various peaks and valleys layered in between as you ascend.
In order to reach that summit you will find yourself experiencing a decline before rising back up again several times over.
Unlike mountaineering, there is no helicopter to rescue you mid-journey. You either jump down to your “death” (give up) or push through progressively and reach the next peak.
The same analogy can be applied for stock trading. Just replace the terms “peaks and valleys” to “Bull and Bear”.
If you observe the graph above, it has several high and low points. These take place within an hour, day, month and year.
Investing 101 is to buy more of a stock when it dips (bearish) and sell the stock when it peaks (bullish) to make a profit on your initial investment.
or you can hodl ;) (this one’s for the diamond hands folks)
For you to make ridiculous profits… you need to commit to buying a position of a particular company during a not so good time (bearish) in hopes that it will eventually flourish. (bullish)
There are obvious risks like the initial investment losing money as the stock depreciates further (Low point in graph dips lower) but the biggest problem of all is the doubt that you carry during the losing phase.
(Not financial advice)
Believe me when I say this, short selling (getting rid of the stock out of fear of further depreciation) is the same as jumping off the mountain when you’re already half-way up.
Both decisions end with regret.
Regret in this case is seeing how much money you could have made if you did literally nothing and just held onto your position. To reach the peak here (i.e. profits) you need to commit to the valley.
So next time you find yourself in a valley… just know that you’re one step closer to reaching that next peak ;)
Over and out Zoomers :)
Links to articles and videos that you may find useful:
Here are my favorite’s of the week!
Podcast: https://bit.ly/3GenSt0
Song: https://bit.ly/3109W5U
Quote: “I have learned over the years that when one’s mind is made up, this diminishes fear; knowing what must be done does away with fear.” - Rosa Parks
Presenting this week’s meme and unpopular opinion:
Unpopular opinion: Long walks on the beach are not that amazing to be listed as the ideal date in every guy’s Tinder bio.
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