I always remember Warren Buffets’ quote that “If I cannot understand it, I will not invest in it.” It has served me well on many occasions. I know that the most successful investors were not made in one day. Definitely investing is not a one time journey. I feel it is a long trip with clear destination points.
You may read books or take an investment course that deals with modern financial and stock investment ideas or, subscribe to dozen investment reports and magazines or watch 24 hrs CNBC business channel, but you have to first know about yourself and very clear about what works for you. How many of my retail investor friends are willing to share this thought?
You must also remember that, as a retail investor, you are competing with market gossips, rumors and large financial institutions, Mutual Funds, and Portfolio Managers who have more resources and faster access to information.
My experience is that bear it in mind that most of the time you are potentially turn out to be your own worst enemy.
You take many times wrong decisions rightly and right decisions wrongly. The reason for being like that may be due to your impatience and time loss that rule over your decision making process. You simply become” herd”.
You tend to make lot of mistakes in managing your buy and sell activities. I sum my candid call is to acknowledge that you learn from your mistakes and When you succeed don’t hesitate to celebrate. Don’t try to copy others’ in borrowing and in investing. If you make mistakes don’t cry over the spoilt milk. Either you decide to stay on or call it a quit. No more half-baked indecisive decisions.
In the world of academics the more mistakes a person makes, the less intelligent that person is thought to be. You ask the meaning of mistakes to successful investors or to business men, they would tell you that they learned lot from mistakes and would conclude “mistakes are learning and correcting opportunities”.
I don’t want to engage on to a debate on attitude towards making mistakes or on Street Smarts Versus School Smarts. My learning from my experience in investing in stocks is that “There is a bit of magic hidden in every mistake”. Think for a minute how learning to ride a bicycle reinforces the idea of the magic found inside of mistakes.