Investing in Stocks in 2012 – As I see it

For 2012, I don’t make any resolutions. Rather I don’t believe in making them.
But definitely I start indulge in myself in recollecting my thoughts on investments.
The truth in the stock market today is that for investors there is no place to hide in the world’s equity markets.
My late father used to say that, don’t make any decisions when you are in anger and also don’t make any commitment when you are in very happy mood.
This is hundred percent true when it comes to investing in stocks.
I also recollect the wisdom of Warren Buffett, the “Oracle of Omaha”.
That is, the stock market is designed to transfer money from the active to the patient and the most important quality for an investor is temperament, not intellect.
I also read that there is never one cockroach.
This thought is very much true when it comes to shining headline stories on stock recommendations by various agencies, advisors and punters.
Most of the time, such headline stories and reports end up like sales talk of street side snake oil salesman.
As you know these road side snake oil salesmen would claim moon and with unending claims of cure and miraculous benefits without any evidence. With well printed Testimonials, anecdotes, pictures and plain old lies kept the public coming. Once their stocks got sold they simply disappear from that spot and go over to next town and one cannot catch them for the product failures. The story has a moral for stock investors.
A prudent investor for 2012 should remember three things.
That is, bad news often begets bad news.
Experience is an excellent and best teacher.
Following your own discipline is essential for success as an investor.
I wish all my blog readers’ happy trading year 2012.

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