Updated: Dec 20, 2021
This video is not about telling you to have diamond hands or all that BS, not at all, its about dealing with losses and understanding that months like this one are unavoidable but manageable.
I lost money this past week and it hasn’t been the best year - China - inflation FED - Corona. This podcast is not about telling you to have diamond hands or all that BS, not at all, its about dealing with losses and understanding that months like this one are unavoidable but manageable.
And I have 3 rules on investing (and 1 extra that applies to everything) that can help you manage this type of situation and would love to hear if you have some as well.
A little bit about myself just for you to frame this video accordingly, I'm a long term investor, I don't do trading, I put money in the markets every month, sometimes twice a month and rarely, vary rarely, sell, but I'll talk about my personal strategy in another video, podcast of and blog post so subscribe :)
Now, lets get back to the main subject which is my 4 rules on investing that will help you manage the loosing part of investing in the markets.
Rule N1: Understand yourself as an investor
Are you patient or impulsive? Are you investing long term or not - stop loss - Do you have time to do in-depth research to be confortable - realistically- picking stock or should you just do index-funds. - Are you using money that you really wont need? - Are you curious? Do you enjoy learning about companies, finances, sectors, etc?
Rule N2: Be analytical and pragmatic not emotional
Don't believe everything you hear or read. - People (even journalists) have biases. - Avoid FOMO - if you did your research and are confident about your strategy, you shouldn't care. - I made this mistake recently with CureVac - Sell if you made a mistake in your analysis or when the your analysis outcome changed and you wouldn't buy it anymore, not just because of a price drop.
Rule N3: Have Long term perspective
If statistics can be believed, the must secured way to invest is long term. If we check the sp500 - dow jones for example... - Research not only the company but the macro as well - Accept that there are somethings you cant control
Extra rule: Align your investments with your believes.
Enjoy and spend your time in things you don't believe or like! There is nothing worse than loosing money on an investment you didn't even like! defense companies, tabaco companies, some pharma companies.
𝟬% 𝗰𝗼𝗺𝗺𝗶𝘀𝘀𝗶𝗼𝗻 𝗼𝗻 𝘀𝘁𝗼𝗰𝗸𝘀: https://med.etoro.com/B15707_A106725_TClick_SBuy%200%20comission.aspx
𝗦𝗶𝗴𝗻 𝘂𝗽 𝘁𝗼 𝗮𝗰𝗼𝗻𝗼𝗺𝗶𝗰𝘀 𝗡𝗲𝘄𝘀𝗹𝗲𝘁𝘁𝗲𝗿: 🚀 https://aconomics.substack.com/
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