Investing is a journey full of lessons, some learned the easy way and others the hard way.

Brian Feroldi, an experienced investor, shares 38 key insights to help you navigate the ups and downs of the financial world. Let’s break down each lesson and see how you can apply these insights to improve your investing strategy.

1. Accept That You’ll Be Wrong Often

Mistakes are inevitable in investing. Expect them, learn from them, and don’t let them deter you.

Suggestion: View mistakes as learning experiences, not failures.

2. Invest to Build Wealth

If wealth-building is your goal, you have to be willing to invest.

Suggestion: Start small if you're new to investing; the key is to get started.

3. Understand Human Psychology

Humans are wired to make irrational decisions in investing.

Suggestion: Take time to understand your biases and learn to recognize them before making impulsive decisions.

4. Confidence Follows Market Trends

As prices rise, so does confidence, but be cautious—market confidence can lead to poor decisions.

Suggestion: Build a strategy based on research, not emotions.

5. Study History and Psychology

The past can provide valuable insights into market behavior.

Suggestion: Familiarize yourself with economic cycles and market psychology.

6. Be Prepared for Volatility

Good stocks often come with gut-wrenching volatility.

Suggestion: Stick with high-quality investments even during downturns.

7. Handling Volatility in Reality Is Harder

Volatility sounds manageable until you’re experiencing it.

Suggestion: Set realistic expectations and be prepared emotionally.

8. A Drop Feels Worse Than It Looks

Losing money hurts more than making money feels good.

Suggestion: Diversify your investments to reduce the sting of any single loss.

9. Prioritize Personal Finances

Your own financial health is more important than any investment.

Suggestion: Maintain a budget and emergency fund before focusing on investments.

10. Balance Optimism and Pessimism

Successful investing requires managing conflicting feelings.

Suggestion: Keep a balanced outlook and avoid extreme reactions.

11. Consider Dollar-Cost Averaging

Most investors would benefit from gradually buying into the market over time.

Suggestion: Set up automatic investments to build wealth consistently.

12. Financial Education Has Limits

Complex formulas aren’t always practical.

Suggestion: Focus on understanding basic investment principles rather than complex calculations.

13. Bear Markets Happen Fast

Bear markets often arrive swiftly, while bull markets grow steadily.

Suggestion: Prepare for downturns by holding cash or safe assets.

14. Avoiding Ruin Is Crucial

Staying in the game is essential. Avoiding catastrophic losses is key.

Suggestion: Diversify your investments to lower your risk.

15. Holding Periods Affect Returns

The longer you hold, the higher your chances of good returns.

Suggestion: Invest with a long-term horizon to ride out short-term volatility.

16. Losses Hurt More Than Gains Feel Good

The pain of loss often outweighs the joy of gains.

Suggestion: Focus on a balanced approach to minimize emotional swings.

17. Follow Simple Financial Advice

"Make more, spend less, invest wisely, and wait" is simple yet powerful.

Suggestion: Keep your investing strategy straightforward and stick with it.

18. Hindsight Makes Trends Obvious

Recognize that we only understand trends clearly after they happen.

Suggestion: Don’t chase trends; stick to your investment plan.

19. Great Investments Are Clearer in Hindsight

It’s hard to spot winning stocks early.

Suggestion: Diversify to increase your chances of holding winners over time.

20. Avoid Quick Gains with Leverage

Leverage can destroy your portfolio faster than it grows.

Suggestion: Use leverage cautiously, if at all.

21. Don’t Sell Winners Too Early

Selling a top-performing stock early is a common mistake.

Suggestion: Let your winners run and only sell if fundamentals change.

22. A Business Isn’t Its Stock

A company can perform well while its stock suffers.

Suggestion: Look at long-term business fundamentals over short-term stock price changes.

23. Short-Term Events Affect Mindset

Recent events heavily influence expectations.

Suggestion: Avoid making decisions based solely on recent market trends.

24. The Market Doesn’t Guarantee Returns

The market isn’t obligated to deliver gains in any set timeframe.

Suggestion: Keep a long-term focus and avoid over-expecting returns.

25. Demand for Accuracy Is High

Investors want precision, but the future is uncertain.

Suggestion: Focus on probabilities, not certainties, when making decisions.

26. Analysts Face Pressure to Be Positive

Analysts may lean towards optimism due to external pressures.

Suggestion: Use analyst opinions as part of your research, not the whole picture.

27. Holding Losers Feels Natural

Investors often hold losing stocks, hoping they’ll recover.

Suggestion: Regularly review your portfolio and cut losses if necessary.

28. Panic Selling Can Be Costly

Selling in a panic can erase years of growth.

Suggestion: Create a strategy to help you remain calm during market downturns.

29. Interest Rates Are Vital

Interest rates affect almost everything in investing.

Suggestion: Pay attention to rate trends and adjust accordingly.

30. Behavior Matters More Than Stocks

Even good stocks can underperform if your behavior is poor.

Suggestion: Focus on disciplined investing habits.

31. Don’t Chase Losses

Doubling down on losers often doesn’t work.

Suggestion: Instead, re-evaluate and consider reallocating to stronger assets.

32. Sectors Go In and Out of Style

Market sectors fall in and out of favor regularly.

Suggestion: Diversify across sectors to smooth out sector-specific fluctuations.

33. Bear Markets Are Good for Long-Term Buyers

Bear markets offer buying opportunities, but many fear them.

Suggestion: Look at downturns as potential entry points for high-quality assets.

34. Greed Appears When Others Are Fearful

It’s tempting to buy when others panic, but caution is key.

Suggestion: Stay rational during market panics to avoid costly errors.

35. Stay Realistic About What You’re Doing

It’s easy to confuse speculation with investing.

Suggestion: Regularly review your portfolio to ensure it aligns with your goals.

36. The Stock Market Attracts All Types

Fast-trackers and patient builders coexist in the market.

Suggestion: Know your own goals and don’t get swayed by others’ strategies.

37. Sometimes, Doing Nothing Is Best

Often, the best move is simply to hold steady.

Suggestion: Resist the urge to constantly tweak your portfolio.

38. Rising Prices Make People Want to Sell

When markets rise, sellers rush in, often missing further gains.

Suggestion: Stick to a plan rather than reacting to short-term price moves.

By understanding and applying these lessons, you can become a smarter, more resilient investor. Remember, investing is about patience, discipline, and learning over time. These insights aren’t just tips—they’re stepping stones toward building wealth and avoiding the traps that many fall into along the way.