EQ plays an important part

As a newbie to investment not long ago, i learnt that how strong u are emotionally affects how u deal with drop in figures and losses. For instance, when a drop comes along, u might have the tendancy to panic and make an Impulse decision to sell off what you have on hand in order to 'reduce the loss'. However, after u calmed down , u would figured that you have realised ur losses with this panic selling, and in some instances, u will be crying in ur heart as u watch the numbers climb up again. It is important to not let emotions get the way of you, instead remain calm, figure out what is happening (i.e. Check out the news, forums etc) before deciding what to do next. For losses, always take it as a learning experience. There's always risk in investing, hence, always important to assess and put aside how much u can afford to lose.