When A nonagenarian investor speaks, investors should pay attention

Here are three stock market tips from this very senior investor, already  into his ninth decade of life.

Comments

Guanyu said…
When A nonagenarian investor speaks, investors should pay attention

Here are three stock market tips from this very senior investor, already into his ninth decade of life.

1. Being a successful equities investor depends not so much on one’s innate intellect, keenness of thought, length of market experience, breadth of knowledge or even academic accomplishments.

Instead, the qualities I’ve discovered that can make or break a shareholder are whether or not he has the guts to give up on a stock before it comes back to bite him, and whether or not he has the heart to hold onto a stock long-term even when it doesn’t appear to be going anywhere fast.

2. I’ve made a lot of money in stocks, but I’ve also lost a lot. The latter often happens after the former, as when I first started playing the market I would often be so excited at a big payday that I would proudly and smugly let down my guard in a moment of self-satisfied hubris, and all my winnings might be foolishly frittered away the next trading day.

The market has a definite level of risk, and buying and selling shares should always be done with informed intuition and without too much passion entering into the mix. “Safety first, moneymaking second,” is a good mantra to remember.

If your brakes aren’t working, don’t plan on taking your car anywhere. The same could be said for share buying – you’ve got to not only know when to stop, but also have the ability to do so when called upon.

Most importantly, before even buying a share, set yourself clear “stop signs” down the road, just as a physical thoroughfare has stop signs and red lights at regular intervals. Jumping in at the right point is just as important as jumping off at the right point.

3. The stock market is always full of opportunities, but is also laden with traps, hazards and pitfalls. Knowing the difference and having the ability to resist the temptations of the latter is of paramount importance.

I’ve found that by giving up on a few “opportunities,” I am thus able to discover and exploit real and authentic opportunities. The real ones might not be as flashy as the fakes, but they’re the real deal nevertheless and you sometimes have them all to yourself at that outset.

Popular posts from this blog

Two ex-UOBKH staff charged with lying to MAS over due diligence reports on a Catalist aspirant