What can an individual investor do?
Though it is believed that investment can be a very profitable field, it is only profitable to those who are strong of will and are prepared to work at it. There is no simple way to get rich quick in the stock market.
The barriers to success are psychological rather than physical. Psychological barriers are so much harder to cross for so few of us can bear the thought of not being part of a crowd.
Here are the words of advice from Dreman in his book Psychology and the Stockmarket.
".... the best chance an investor has is to stand apart from popular thinking. He must be willing to forego the thrill of being in unison with the market, in agreement with the expert opinion and with the exciting, seemingly surefire ideas currently in vogue.... This is no small sacrifice. To own the 'right' stocks in a rising market is a heady experience. There is a wonderful blend of monetary gain and ego satisfaction in being right in a popular manner.
Man is a social animal. To succeed, the investor has to be able to withstand the tremendous pressure leading to conformity... (he) will face a continuing flow of negative feedback from the market, from experts and from groups of people whom he respects. The reader may feel a little like the patient whose doctor has advised him to give up sex for this health. Some of us might just prefer to die happy."
Keep INVESTING Simple and Safe (KISS) ****Investment Philosophy, Strategy and various Valuation Methods**** The same forces that bring risk into investing in the stock market also make possible the large gains many investors enjoy. It’s true that the fluctuations in the market make for losses as well as gains but if you have a proven strategy and stick with it over the long term you will be a winner!****Warren Buffett: Rule No. 1 - Never lose money. Rule No. 2 - Never forget Rule No. 1.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment