You shouldn't invest in stocks if you need that money to survive

IF YOU ARE A LONG TERM INVESTOR

The first thing a person needs to know about investing is you have to have enough cash outside of investing before you invest. You don't invest your last 1000 dollars that you need to pay the rent or to buy food with. So, unless you have at least 5000 to 10,000 in savings to begin with, most people have problems if they don't follow these rules.

So, you only invest money you don't need to survive AFTER you sock away 5000 to 10,000 in savings for emergencies. Note: this will be more or less depending upon your needs and cash flow and where you live and whether you grow your own food or not etc.

So, if you are a long term investor you don't invest the money you need to survive during the next year or so in your life.

So, this way you don't short yourself and have to borrow money to make ends meet. Borrowing, if you are an investor is usually limited to borrowing to buy a house. Otherwise, you try to pay cash for everything (at least pay off credit cards monthly). Because you know that interest payments to credit card companies will take away any money you have that you want to invest. So, instead of paying out money in interest you invest the money you would have paid out in interest and grow your investments instead of paying interest on credit cards.

This is how long term investors actually get ahead here in the U.S.

Whereas most day traders go bankrupt within 10 years statistically here in the U.S.

Because then it is more like gambling and you cannot win every gamble forever. So, this is why
Day traders tend to go bankrupt within 10 years of risky bets.

Whereas a long term investor keeps the dividend bearing stocks that make money for him over the long haul. A long term investor isn't worried about those stocks going up and down much as long as their trend is upward. Also, it isn't a good bet to have all your money in one stock because it could tank one day and then you would have nothing. So, it is better to diversify amoung 10 to 30 different stocks even if you only have a little of each one because then if one tanks you might sell it at a loss but you still made money on the Yearly dividends on that stock while you owned it.

As a long term investor you don't worry about corrections because they happen all the time. What you worry about is: "What is the trend of each of my stocks that I own?" If one trends downward too long you sell it and buy one that is trending upward.

But, most of all don't invest money you need to live on in the next year or more. This is really important.