One of the key aspects that we often are not taught in any Business School but left to learn our selves is “how to become a successful investor”.
After spending years of reading, understanding, investing, making some loosing some and net gaining some money in the markets, I share what I have learnt.
There are three guiding principles (three “P” yup, can’t avoid the jargons) that one could follow:
Process
Practice and
Patience
Let us dive deeper into each principle.
Easier said than done but one should have a process to follow. The process is the set of rules or guidelines that one needs to follow across each of the following steps.
The set of rules could be simple or as complicated as you like but , define the rules.
Example, one might use only Moving averge cross overs to identify stocks, entry and exit points. Or it could be a complicated if-then-else logic.
A definite NO is blindly following someone else’s social media posts (including ours).
No plan gives results when its only on paper. So practise the rules consistently. This guiding principle has three steps in it as well.
The objective here is to ensure that your process works. This means, you are practising and also reviewing your process constantly.
Why should one constantly review the process?
Well, market conditions change, so what worked earlier may not work as good now.
The three guiding principle here i.e. monitor the exit points is critical. One should keep a view on when to get
Now this is the most imporant principle. No plan would give result immediatley.. so there will be lot of learnings along the way.
Investing is a journey, enjoy it and the learnings it gives.
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