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“If you want to have a better performance than the crowd, you must do things differently from the crowd.”
Everybody longs to attain a higher return than the average investor, but many investors seem to listen more to the news and professional analysts opinions on a stock, than to do their own research.
If you want to attain the results the financial analyst dictate, Follow them, but if you want to attain incredible returns, you must find value where others have left for death.
“Invest at the point of maximum pessimism.
Bear markets/sentiment always bottom at some point and this creates a perfect entry to buy a stock at the cheapest price possible, in other words the “The Stock is for Sale!”. If you want to attain incredible returns in the stock market, you must find value on oversold stocks.
The first rule of investment is “Buy Low and Sell High”, but many people fear to buy low, because of the fear of the stock dropping even lower, then you may ask “When is the time to buy low?” The answer is: When there is maximum pessimism.
The four most dangerous words in investing are ‘This time it’s different.’”
This is a good one and a hard teaching to master. Investors often play the market psychologically, when they should stick to their strategy on paper, not with emotions.
We often make mistakes as investors and instead of learning our lesson, making us savvier investors, we seem to keep committing the same mistakes over and over again. A certain feeling of optimism when the situation repeats arises when the opportunity reappears.
Learn to control yourself and analyze the situation, remember the past mistakes you’ve made so that you create a different outcome. Remember the definition of Insanity “repeating something and expecting different results”
You may like: Who is the Real Wolf of Wall Street?
“If we become increasingly humble about how little we know, we may be more eager to search.”
Don’t think you know it all, specially when it comes to investing. Always aspire to become a better investor. This applies to people who want to make themselves better in their finances by reading this post, by searching for their stocks, doing the homework.
We recognize we don’t know it all and the search for our answers becomes intriguing, and at the end, most importantly, we become a better person.
Don’t miss our FREE Stock Tip: check it out!
“Bull markets are born on pessimism, grown on scepticism, mature on optimism and die on euphoria”
John Templeton refers back again to value investing, and reinforces the contrarian approach on the market.
This message was edited by ferari on 27-Feb-2018 @ 4:28 PM