Having failed investments in the stock market is a common thing, and we all get hit by major losses every once in a while. So the title of this article can be considered somewhat misleading, but it all depends on your perspective. If all you do is lose money in the stock market and don’t learn why you are losing money, then you truly are failing. However if you lose money in the stock market but learn from your mistakes, then you aren’t failing, you are getting an education. You will have plenty of bad investments in the stock market, so you might as well capitalize on them and attempt to learn everything you can from them. After you figure out what you did wrong, consider creating a list of rules to invest by so that you don’t ever repeat your mistakes.

This is where discipline, dedication, and confidence in yourself are crucial. Stock market failures will always make you doubt your ability to successfully invest on your own. But you cannot be discouraged, and must always remember that with every mistake you make, you are now wiser and more experienced. There is no such thing as failure if you don’t give up.

If you learn from your mistakes and stick with your goals, you will ultimately be successful and can never fail in the stock market.

Every day the stock market tempts me to be a gambler and not an investor. Each day that I become a better investor, I am tempted to throw it all away for some risky trade. Becoming successful in the Stock Market is never something that is easily accomplished, and one of the main reasons is because it is just too easy to get caught up in the quest for fast and easy money. You make a few good investments, and just like that you feel like you are ready to take on some of the more riskier positions. The irony of it is that you built up most of your gains and confidence through conservative investments. So why would it make sense to go against what is working for you?

The answer is it makes no sense at all, but it sure does sound tempting! Who wouldn’t want to start investing more aggressively when they see that they are successful and profitable? It seems like a good enough idea, but in reality it’s just asking for trouble. It is crucial that you stick to your rules for investing success (you do have a set of rules to invest by, don’t you?), otherwise you are just increasing your risk for losses to your portfolio. This is easier said than done, especially in a market that is exploding with volatility. So here is a list of things to remind yourself when the temptation becomes unbearable:

1. You are going against what has been working for you
2. You are increasing your risk
3. Are the potential profits so desirable that you need to ignore your own rules for long term investing?
4. Has more aggressive investing worked for you in the past?

Remember that as an investor, your chances for success over the long term are significantly higher when you take on a conservative strategy. Avoiding the risky moves for your overall portfolio will be your ticket to long term success. This doesn’t mean you need to have your entire portfolio consist of boring low risk, low reward stocks, but it does mean that the majority of your portfolio should be positioned so that you can weather any financial disaster that could happen in the stock market.

Take Time Off
It will be very helpful for you to stay away from the market, if only for a day. Try and enjoy yourself without focusing about the big hit you just took. Pretend as if it didn’t even happen, and simply enjoy your day. If you need more time away from investing, take as long as you need. Your goal is to take your mind off your losses so that when you get back into investing, you return with a refreshed, rational, and positive state of mind.

Don’t Feel Discouraged
Despite how devastating a significant money loss can be, you cannot become discouraged from investing. You must intend to return so you can achieve your original investing goals. Investing isn’t easy, and if you want to be successful you need to be committed to it. Use the finish line goal as your motivation and disregard the current hurdles in your path. Even the most successful investors and traders have taken significant losses, so don’t feel like it’s a personal failure.

Consider it a Right Of Passage
As I said, everyone eventually takes a big hit in the stock market. Veteran investors know the pain of major losses, and they know it well. The consolation is that dealing with the emotional pain/discouragement will get easier as time goes on. You will be more experienced, and if you are unfortunate enough to receive another significant hit to your portfolio, you’ll be better prepared to cope with those losses.

Appreciate the Lessons You Learned
You always learn a great degree of knowledge from your mistakes. Take the time to appreciate the lessons you learned when you took a significant money loss. Make sure you realize what those lessons are, so you are sure not to repeat those same mistakes. For some investors, they use these lessons to build a list of rules for successful investing (going against the rules means risking a significant portfolio hit).

I couldn’t be more saddened by the fact that some people believe this is true. Sure, wishing and hoping for something is one step towards achieving a goal, but it’s just a single baby step towards reaching that goal. If you really want something, you need to commit yourself to it. Wishful thinking alone is for bums. Being positive and hoping for a better tomorrow certainly doesn’t hurt your circumstances, but actually applying yourself and thinking of ways to reach your goals is a much better plan.

I think of how many products and services surround our society that promise amazing results with little to no effort required. It’s just sad to know there is always a sucker out there willing to hand over their money in return for false hope. Especially when it comes to investing. The Investing industry is full of lies, with scam artists hoping they can convince you that they have the secret for profitable investing. Too many discouraged, ignorant, or foolish investors keep these useless companies in business by believing their lies and purchasing their product or service.

Well, I’m here to say one thing: There is no easy path. The average individual needs to wake up and realize that success is achieved through becoming knowledgeable, working intelligently and diligently, staying committed, staying positive, and believing in yourself. Wishful thinking alone will take you nowhere, especially in the stock market. The sooner you realize this, the quicker you can move on to the proper ways of learning how to achieve your goals.

1. No Wishful Thinking
There is no stock genie granting magical wishes. If your stock is performing poorly, you need to get straight to the point and ask yourself why you are still invested in your stock. If your answer is anything other than “I know for certain that the market is valuing it incorrectly”, then you are just doing wishful thinking.

2. Take a Time Out
If you feel like you aren’t certain what you should do with a stock, and that perhaps you are becoming emotional, then you need to take a time out. Step away from your desk, try and go to a quiet place, and remind yourself why you are investing in your stock. If your explanation sounds rational to you, then you know you are invested properly. Use this to boost your confidence anytime you doubt yourself or become emotional.

3. No Playing Favorites
It’s easy to grow fond of a stock that has made you a good profit (or still is making you profits). While it’s okay to be a supporter of the company the stock represents, it’s not okay to blindly put your money into it hoping their past performance will continue. Always remember that you invest in stocks to make money, and nothing more.

4. Don’t Obsess Over Daily Fluctuations
If you are investing and not trading, you need to realize that your stock’s price will fluctuate every day. This is normal, and it shouldn’t change any of your beliefs on where the stock is headed, unless there is a significant change that occurs within the stock.

5. It’s Just Money, Get Over It
This might seem crazy to some, but you should always remember that in the end it’s just money. If you obsess over your profits and losses, you’ll be investing with a clouded mind. Part of being an unemotional investor is accepting the fact that you will sometimes lose money. As long as you pick yourself back up and head right back with a rational thought process, you’ll almost always come out profitable.