The stock market is exciting. The idea of a huge win is incredibly alluring — but it can also be risky. If you want to keep “playing,” you need to learn to weather the losses.
When the COVID-19 pandemic hit, a lot of investors were looking for companies that could survive — and many even thrive — during the tumultuous times. Adam Koprucki, founder of RealWorldInvestor.com, was one of those investors. He bought Peloton stock when it was popular, expecting it to keep going up.
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“I bought Peloton near the top, but the stock has since tumbled,” said Koprucki.
In the end, Koprucki lost $10,000. “It’s a very deflating experience,” he said. “You often hear about success stories, but in reality, there are probably a lot more losses than gains, you just don’t hear about them.”
No matter how confident an investor you are, there are always huge risks involved in investing. Koprucki learned that the hard way.
Despite his experience losing money, Koprucki didn’t give up on investing altogether. Instead, he shifted his approach. Here’s the four reasons one man still invests, even though he lost $10,000 in the stock market.
The Stock Market Is Resilient
Market downturns are scary. After Koprucki lost so much on Peloton, you couldn’t blame him if he never wanted to invest again.
However, he knew the stock market is resilient. It’s always going to have ups and downs, and if you want to be part of it, you have accept this fact. This knowledge gave him enough confidence to stay with it for the long haul.
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Retirement Goals
Koprucki decided to take a long-term approach with his investments. His goal wasn’t to strike it rich overnight, but rather to build up enough savings, over many years, for a comfortable retirement. He stuck with putting money into proven long-term investment strategies. He knew this wouldn’t make him a millionaire right away, but it was a safer bet, with the promise of steady, reliable growth over decades.
“I am still investing in the long term for retirement purposes, not get rich quick reasons,” he said.
Future Vision
Koprucki keeps coming back to that vision — one that means you stay the course and weather the trends.
He realized that successful investing meant knowing the stock market will always have good days and bad days, good months and bad months, even good years and bad years. But a smart investor just keeps… staying invested.
“Investing in the long term requires ignoring the short term fluctuations — days, months and even years,” said Koprucki. “Focus on your long-term goals.”
A Switch to Index Funds
However, after his experience with Peloton, Koprucki did change his investing approach. Because the stock market can sometimes be volatile, he decided to put his money primarily into index funds rather than individual stocks.
“I have learned to avoid the ‘hot’ stocks and stick with traditional index fund investing,” said Koprucki.
Successful stock picking requires making educated guesses about which companies will thrive and which will fall — whereas index funds sidestep this challenge. You’re essentially investing in an entire segment of the market, rather than making targeted bets. This makes them much less risky than betting everything on just one company’s stock.
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This article originally appeared on GOBankingRates.com: I Lost $10,000 in the Stock Market: 4 Reasons I Still Invest
