4 Big Investing Lessons I Learnt in 2024

Investing is 60% mindset, 40% skills. In 2024, the markets have been a rollercoaster (even though on the whole, it was one of the best years. With every headline or trend, the temptation to act impulsively loomed.

Yet, through it all, some lessons stand the test of time—lessons I’ve learned firsthand and am sharing with you today. These aren’t just about managing money; they’re about managing emotions, staying grounded, and making decisions that align with your long-term goals.

1. Tune Out the Noise

During the market dip in early August, I watched as many people were swayed by the headlines. A friend even sold off half his portfolio—only to see the market rebound the next day. It’s a timeless lesson: Don’t let mainstream news dictate your investment decisions. Remember, it’s often designed to mislead.

Actionable Steps:

• Set boundaries for news consumption: Limit the time you spend consuming financial news to avoid emotional overreactions.

• Keep an investing journal: Track your decisions and the reasoning behind them. Revisit these notes during volatile times to remind yourself of your strategy.

• Review fundamentals: When market dips occur, assess your portfolio’s underlying assets to confirm their long-term value.

• Practice the pause: Before making any sudden financial moves, take 24 hours to reflect.

2. Resist the Temptation

This year, I saw two of my friends stray into the risky world of trading. The allure was strong, but a mentor reminded me of a crucial statistic: 75% of traders lose money in the long run. It was a wake-up call. Long-term investing, on the other hand, has a much higher success rate. So, stay the course and avoid the temptations of quick gains.

Actionable Steps:

• Limit speculative investments: Allocate no more than 5% of your portfolio to high-risk trades to protect your overall wealth.

• Automate investments: Set up recurring contributions to mutual funds, ETFs, or retirement accounts to reduce the urge to time the market.

• Learn from others: Read case studies of long-term investors to reinforce the benefits of staying committed.

• Create a personal reminder: Write down why you’re investing long-term and post it somewhere visible to keep your goals in focus.

3. Don’t Put Your Heroes on a Pedestal

People change, and so do their strategies. When my friends turned to trading, I was initially shocked but quickly realized that no one is infallible. Remember to stay focused on what’s best for your long-term success—heroes can falter, but your principles shouldn’t.

Actionable Steps:

• Maintain independence: When taking advice, ask, “Does this align with my personal goals?”

• Diversify your mentors: Learn from a variety of successful investors to avoid putting all your trust in one person's method.

• Adapt without losing core principles: If you find a strategy that works better, adjust thoughtfully while keeping your long-term objectives intact.

• Reflect on your progress: Periodically review your journey to see how sticking to your values has benefited you.

4. Invest When Others Are Fearful

On August 5th, the market dropped by 3%, and fear was everywhere. But that day turned out to be my most profitable in 2024. My only regret? Not investing more. When fear grips the market, it’s often the best time to invest.

Actionable Steps:

• Build a "buy" list: Identify stocks, ETFs, or funds you'd like to purchase during a downturn, focusing on quality assets.

• Keep cash reserves: Maintain a percentage of your portfolio in cash to take advantage of market dips.

• Use dollar-cost averaging: Make regular investments regardless of market conditions to avoid emotional decision-making.

• Study market recoveries: Research historical market recoveries to build confidence in investing during downturns.

Closing Thoughts

Investing is a journey, not a sprint. It’s about more than just growing wealth; it’s about cultivating patience, discipline, and the ability to keep emotions in check. These four lessons—tuning out the noise, resisting temptations, seeing heroes as human, and investing during fear—aren’t just strategies for the market. They’re strategies for life.

Stay focused, keep learning, and trust in your long-term vision. The best results often come when you stay the course, even when the path seems uncertain.