June 2, 2010 Leave a comment
Over the last 3 years, I have been an avid follower of the markets, more precisely the stock market. In my opinion, it is one of the most dynamic and exciting part of the business world, namely because everything that happens is an input in its valuation. During that period, we have obviously experienced one of the worst recessions due to the sub-prime mortgage crisis. This crash caused a lot of people to exit the market from an investment perspective, however for good or bad this is a market that doesn’t quit. That being said in 2009, we have experienced one of the most impressive rallies in the last few decades. Below is my key personal lesson learned from that period.
If I had to summarize my view on stock market investing into one word, it would be: discipline. Investing in the stock market requires great degree of discipline. Discipline to always think rationally especially when everyone around you is not. Discipline to identify what news/factors should be considered when making buying/selling decisions. Discipline in buying and selling in increments to reduce the risk of doing so at the wrong time. Discipline in buying stocks based on certain hypothesis, and re-evaluating these hypothesis on a frequent basis to ensure that they hold, and in case they don’t the discipline to dispose of them.
This post is the start of a chain of posts on investment, which I hope you find interesting. It is inspired by one of my esteemed mentors in that area: Jim Cramer. His books, and TV show: Mad Money are worth every minute and penny. To follow my latest investments and my current positions please visit my Seeking Alpha profile: http://seekingalpha.com/user/482536/profile.