Saturday, November 19, 2011

Do you have fear after making investment?

In Star Wars Episode 1, Jedi master Yoda once said, "Fear is the path to the dark side: fear leads to anger, anger leads to hate, hate leads to suffering." If you have followed the Star Wars stories, Anakin Skywalker’s fear of losing the ones he loves is main reason why he eventually turned to the dark side of the Force.

For investor, the fear may come from falling price of the stocks he owned. As the result, he may start to be angry and hate himself for buying in before the stock prices start to fall. Next he would be suffering for holding these stocks and eventually forced to sell them at a loss.

As a pure investor myself, I have overcome the fear of investing by taking the following measures:

1)Always have a saving that can last me for at least one year in case of any unexpected situation.

2)Always invest with the extra money that I will not be touching for the next ten years.

3)Always pay up in full for any stocks that I have bought. I will totally ignore CFDs, warrants and other leveraging investment instruments.

4)Never do shorting on stocks.

5)Always buy stocks from companies with strong fundamental.

6)Always set my own fair price to buy in stocks and be able to hold even the price might fall.

3 comments:

Temperament said...

Hi,
Me agree fully. It's even better to have the patience to wait for a severe Bear Market to buy fundamentally sound stocks, heavily.
Cheers!

Freedom Achiever said...

Hi Temperament,

Yes, I do agree patience is very important.

May the profit be with you :).

Regards

Temperament said...

Hi Freedom Achiever,
Same to you.
Shalom.

Have you started your journey towards financial freedom?

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