First, I want to point out that the long-term historical return of the stock market is a little over 10% per year. Very few long-term investments can make this claim. Some would argue that real estate is a better investment, and it may be in some cases, but I would rather put my money in investments that don’t require maintenance, renters, property taxes, or other “hassles” as I would refer to them. . Of course, your own house, the one you live in, is another story.

Now you’re probably thinking, “That’s great and all, but how does this help me make a million dollars in the stock market?” I’m glad you asked. One of the most important lessons about stock investing that anyone can give you is patience. If you think you are going to make a fortune in the stock market overnight or even in a couple of years then I wish you good luck, but unfortunately you are more likely to lose money than make money trying to beat the market. However, if you are willing to find some good companies to invest in and are patient, there is a good chance that you will get a good return on the stock market. In fact, even stocks that have underperformed can earn you good money on your investment, as the Stock Performance Guide on the 1stock1 website demonstrates.

Another very important investment lesson is time on the market. Over time, most established companies continue to grow and, as a result, their share price grows as well. In the short term, stocks can be very volatile and their prices can go up and down on a daily basis. However, as you extend its time frame, a strong stock behaves in a much more predictable manner. This does not mean that your investment will always make money, but time puts the odds in your favor.

The third lesson I’ll give you about stock investing is discipline. Determine why you are investing and what you want to achieve through the investment. Once you decide your reasons for investing, make a plan and stick with it. Don’t be lured into the next “sure thing” in the stock market. For every one that works, several more will fail. If it were a sure thing, investors would know about it and would increase the share price accordingly. If you know information that the rest of the stock market does not, then you are looking for insider trading charges. It is very easy to be tempted to make “quick money” and much more difficult to be disciplined with an investment plan. Unsurprisingly, the path that requires the most work yields the best results.

Lastly, I would like to stress the importance of diversification. Probably the biggest mistake you can make when investing is putting all your money in one stock. This strategy is not only risky, but also less likely to return as high as a diversified portfolio. Having your money invested in multiple stocks helps minimize risk while increasing overall return.