In the last few days I have been reading and meditating a lot while spending time by the sea. At times, I also went through the news feed, which I rarely do. I noticed again and again how emotional many market participants are and how little it is sometimes about facts. In doing so, I also questioned myself critically and came to the conclusion that this is a completely normal maturing process any successful investor (or trader) has to undergo:
If the marketโs behavior seems mysterious to you, itโs because your own (and peoples) behavior is mysterious and unmanageable. You canโt really determine what the market is likely to do next when you donโt even know what youโll do next. Because more than other things, the market cannot be planned. There is no blueprint. More like chaos theory. ๐
๐๐ฅ๐ญ๐ข๐ฆ๐๐ญ๐๐ฅ๐ฒ, ๐ญ๐ก๐ ๐จ๐ง๐ ๐ญ๐ก๐ข๐ง๐ ๐ฒ๐จ๐ฎ ๐๐๐ง ๐๐จ๐ง๐ญ๐ซ๐จ๐ฅ ๐ข๐ฌ ๐ฒ๐จ๐ฎ๐ซ๐ฌ๐๐ฅ๐. ๐๐ฌ ๐๐ง ๐ข๐ง๐ฏ๐๐ฌ๐ญ๐จ๐ซ, ๐ฒ๐จ๐ฎ ๐ก๐๐ฏ๐ ๐ญ๐ก๐ ๐ฉ๐จ๐ฐ๐๐ซ ๐ ๐ข๐ฏ๐ ๐ฆ๐จ๐ง๐๐ฒ ๐ญ๐จ ๐ฒ๐จ๐ฎ๐ซ๐ฌ๐๐ฅ๐ ๐จ๐ซ ๐ญ๐จ ๐ ๐ข๐ฏ๐ ๐ฒ๐จ๐ฎ๐ซ ๐ฆ๐จ๐ง๐๐ฒ ๐ญ๐จ ๐จ๐ญ๐ก๐๐ซ ๐ฆ๐๐ซ๐ค๐๐ญ ๐ฉ๐๐ซ๐ญ๐ข๐๐ข๐ฉ๐๐ง๐ญ๐ฌ. ๐๐ก๐ ๐ข๐ง๐ฏ๐๐ฌ๐ญ๐จ๐ซ ๐ฐ๐ก๐จ ๐๐๐ง ๐ฆ๐๐ค๐ ๐ฆ๐จ๐ง๐๐ฒ ๐๐จ๐ง๐ฌ๐ข๐ฌ๐ญ๐๐ง๐ญ๐ฅ๐ฒ ๐ญ๐๐ค๐๐ฌ ๐๐ง ๐๐ฉ๐ฉ๐ซ๐จ๐๐๐ก ๐จ๐ ๐ข๐ง๐ฏ๐๐ฌ๐ญ๐ข๐ง๐ ๐๐ซ๐จ๐ฆ ๐ญ๐ก๐ ๐ฉ๐๐ซ๐ฌ๐ฉ๐๐๐ญ๐ข๐ฏ๐ ๐จ๐ ๐ฆ๐๐ง๐ญ๐๐ฅ ๐๐ข๐ฌ๐๐ข๐ฉ๐ฅ๐ข๐ง๐. ๐๐ฅ๐ฅ ๐จ๐ ๐ฎ๐ฌ ๐ก๐๐ฏ๐ ๐จ๐ฐ๐ง ๐๐๐ฆ๐จ๐ง๐ฌ ๐ญ๐จ ๐๐ฑ๐จ๐ซ๐๐ข๐ฌ๐ ๐จ๐ง ๐ญ๐ก๐ ๐ฃ๐จ๐ฎ๐ซ๐ง๐๐ฒ ๐ญ๐จ ๐๐๐๐จ๐ฆ๐ข๐ง๐ ๐ฌ๐ฎ๐๐๐๐ฌ๐ฌ๐๐ฎ๐ฅ ๐ข๐ง๐ฏ๐๐ฌ๐ญ๐จ๐ซ๐ฌ.
Here are several rules that worked for me as I grew from an amateur into an erratic semiprofessional and finally into a calm professional. You may change this list to suit your personality.
1. Decide that you are in the market for the long haulโthat is, you want to be an investor even 20 years from now. Understand that it is not a sprint, but a marathon.
2. Learn as much as you can. Read and listen to experts, but keep a degree of healthy skepticism about everything. Ask questions, and do not accept experts at their word.
3. Do not get greedy and rush to tradeโtake your time to learn and be patient. There will always be good opportunities in the months and years ahead - you don't miss anything.
4. Develop a method for analyzing the marketโthat is, โIf A happens, then B is likely to happen.โ Markets have many dimensionsโuse several analytic methods to confirm investments. Test everything on historical data and then in the markets, using real money. Markets keep changingโyou need different tools for investing in bull and bear markets and transitional periods as well as a method for telling the difference.
5. Develop a money management plan. Your first goal must be long-term survival; your second goal, a steady growth of capital; and your third goal, making high profits. Most investors put the third goal first and are unaware that goals 1 and 2 exist.
6. Be aware that the person itself is the weakest link in any trading system. Learn how to avoid losses or develop your own method for cutting out impulsive investments.
7. Winners think, feel, and act differently than losers. You must look within yourself, strip away your illusions, and change your old ways of being, thinking, and acting. Change is hard and takes time, but if you want to be a professional investor, you have to work on changing and developing your personality consistently.
๐๐ง ๐จ๐ซ๐๐๐ซ ๐ญ๐จ ๐ฌ๐ฎ๐๐๐๐๐, ๐ฒ๐จ๐ฎ ๐ง๐๐๐ ๐๐ซ๐ข๐ฏ๐, ๐ค๐ง๐จ๐ฐ๐ฅ๐๐๐ ๐ ๐๐ง๐ ๐๐ข๐ฌ๐๐ข๐ฉ๐ฅ๐ข๐ง๐. ๐๐จ๐ง๐๐ฒ ๐ข๐ฌ ๐ข๐ฆ๐ฉ๐จ๐ซ๐ญ๐๐ง๐ญ, ๐๐ฎ๐ญ ๐ฅ๐๐ฌ๐ฌ ๐ฌ๐จ ๐ญ๐ก๐๐ง ๐๐ง๐ฒ ๐จ๐ ๐ญ๐ก๐จ๐ฌ๐ ๐ช๐ฎ๐๐ฅ๐ข๐ญ๐ข๐๐ฌ. ๐๐ง๐ ๐จ๐ง ๐ญ๐ก๐ ๐ฐ๐๐ฒ ๐ญ๐ก๐๐ซ๐, ๐ฒ๐จ๐ฎ ๐๐๐ง ๐๐ฅ๐ฐ๐๐ฒ๐ฌ ๐๐ก๐จ๐จ๐ฌ๐ ๐ญ๐จ ๐๐จ๐ฉ๐ฒ ๐ฉ๐๐จ๐ฉ๐ฅ๐ ๐ญ๐จ ๐ฅ๐๐๐ซ๐ง ๐๐ซ๐จ๐ฆ ๐ญ๐ก๐๐ฆ ๐๐ง๐ ๐ฌ๐ญ๐๐ซ๐ญ ๐ฒ๐จ๐ฎ๐ซ ๐ฃ๐จ๐ฎ๐ซ๐ง๐๐ฒ ๐จ๐ง ๐ญ๐ก๐ ๐ซ๐ข๐ ๐ก๐ญ ๐๐จ๐จ๐ญ.
Have a successful week!
BR