The discipline of investing
I have the privilege of being friends with traders for large financial institutions. This allows me to get some top-notch reserach from them and to paratake into their insights into investing.
The day after the world markets dropped based on fears of an economic slowdown, one of my trader friends made an interesting obvservation to me. He believes 70% to 80% of his clients would realize greater investment gains if only they had the discipline to stick to their plan. They didn't pick bad stocks and/or bonds. They just didn't stick to their plan.
It reminds of something I once heard- success in life depends on hard work, discipline and a little good luck. I suspect the same applies to investing in the stock market- do a lot of research (hard work), stick with the plan (discipline) and hope for good times (good luck).
Having been told this by my friend, I am thinking of ditching a lot of stock market research I read and refining a plan I can stick to. I'll keep you posted.
The day after the world markets dropped based on fears of an economic slowdown, one of my trader friends made an interesting obvservation to me. He believes 70% to 80% of his clients would realize greater investment gains if only they had the discipline to stick to their plan. They didn't pick bad stocks and/or bonds. They just didn't stick to their plan.
It reminds of something I once heard- success in life depends on hard work, discipline and a little good luck. I suspect the same applies to investing in the stock market- do a lot of research (hard work), stick with the plan (discipline) and hope for good times (good luck).
Having been told this by my friend, I am thinking of ditching a lot of stock market research I read and refining a plan I can stick to. I'll keep you posted.
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