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I tell people investing is much about emotions as it is about logic (if not more)
Just like you, I usually have the urge to buy a stock just because it's the top talked about in my community. But that's a very bad and unproductive way to go about investment.
Just like you, I usually have the urge to buy a stock just because it's the top talked about in my community. But that's a very bad and unproductive way to go about investment.
It shows that you are outcome driven instead of process driven. Thanks to @jposhaughnessy for pointing this out to "me" - Google Talks.
An investor that will stand the test of time must be process driven.
An investor that will stand the test of time must be process driven.
Here's how I fight the tendency of going for hot stocks through story telling:
I tell myself that about a year ago, some stocks were also hot cakes and I missed them
That I missed them then doesn't mean I can't invest in other great companies now.
I tell myself that about a year ago, some stocks were also hot cakes and I missed them
That I missed them then doesn't mean I can't invest in other great companies now.
I wrap that story up by saying I could tell same story in about a year time.
Truth is there will always be a great company to invest in. There were great opportunities 100 years ago, 10 years ago and 1 year ago.
In another 100 years, you will still be able to say the same
Truth is there will always be a great company to invest in. There were great opportunities 100 years ago, 10 years ago and 1 year ago.
In another 100 years, you will still be able to say the same
Don't rush to buy and don't rush to sell.
The secret power is building a strategy and refining such strategy in light of new knowledge.
That's where I am now.
The secret power is building a strategy and refining such strategy in light of new knowledge.
That's where I am now.
Value the process more than the outcome.
You can repeat a process to give on an average a known outcome. But when you are outcome driven with no process. You tend to be at the mercy of luck.
You can repeat a process to give on an average a known outcome. But when you are outcome driven with no process. You tend to be at the mercy of luck.
