3 Guilt-Free Mindset When Buying Stocks

*This blog post is my personal opinion only and may contain affiliate/referral links.

Sometimes buying stocks is not like buying ice cream. It does not promise instant gratification. It does not guarantee that buying will produce a sweet reaction right then and there.

How do we tackle this spending guilt? Aside from the research and due diligence that every investor should do before considering if a stock is worth a buy, i think it is important to have a proper mindset before, during and after the stock purchase.

First of all, it is imperative to have that stock watch list. Having those stocks under your watchful eye will give you an idea for the ideal price entry. If you have them lined up too, it is more likely you will do your fundamental and technical study so you will be convinced that your stock is a potential buy.

Buy During a Dip

Stock price go up and down, it’s the natural law of supply and demand. Buyers get greedy they buy more, buyers fear the worst and they sell. As an investor and also trader, you get a “discount” when you buy a stock at a low price. Buying during a dip is an opportunity to buy more shares too. If Stock A is $10 on Jan 1 and then Stock A price drops to $5 on Jan 31, you get yourself 2 Stocks if you buy it during the dip.

DCA (Dollar Cost Averaging)

Consistency is the key if you are investing for the long run. Regardless of the price, you buy the stock and you ride its highs and lows. For a long term investor, this is somewhat guilt and regret-free spending because he or she is passively investing with the mindset that the high stock price purchases will average out the low stock price and ultimately produce a decent return in the end.

Extra Money for Investing

Allocating that extra money on the table for stock investing is a wise move and never a dumb move for an investor. Extra money is something you can afford to lose and won’t affect your basic and other necessary expenses and investments. Investing with this disposable money means it won’t dent your net worth too. Think of it as conscious and calculated play money that you are betting for growth and capital gains.

Buying stocks is not supposed to be a regretable moment. Knowing when to buy and having the right frame of mind when buying are good traits an investor can rely on if he or she wants to be succesful.

Thank you for reading.

Jay

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