Why most of us invest poorly

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…because most of us in the stock market usually don’t investingwhich is…

  • You wonder how markets work,
  • Understanding how other investors behave and why not behave like most of them,
  • study businesses
  • We stick only to what is simple and what we understand,
  • Purchase of shares at an appropriate valuation,
  • Own these businesses knowing they are “businesses” and not just symbols on your screen
  • Be patient with these businesses and hang on until they remain good businesses.

Instead, we are busy…

  • Envy (others make money fast or lose money slowly),
  • Cloning (mindlessly acquiring the ideas of others),
  • Forecasting (the future of markets, stock prices and the economy),
  • Fear (leakage of future profits),
  • I regret (past mistakes)
  • Avoidance (acceptance of current mistakes),
  • Denial (reality, especially when it’s harsh) a
  • Indulging (in unnecessary information and noise)

And if that’s not all, it often leads us to –

  • Trading (frequently, which increases our costs),
  • Average reduction (for bad trades),
  • They brag (about our lucky short-term gains) and sometimes
  • Trolling (other social media investors who haven’t done as well as us in the recent past).

With such a busy schedule, where is the time to exercise investing?

Countless wise people have advised us for centuries that to be good at anything, we don’t always have to add more things, but give up some of them.

However, when it comes to investing, giving up all of the above is not as easy as it sounds. All of these (mis)attributes and (mis)behaviors make us human (besides trolling others), so it makes no sense to try to remove them all at once from our lives.

But if we work to minimize them—some starting today and others over time—we can end up with a better outcome than we ever imagined.

I’ll leave you with a few quotes that signify how what we think and do now helps us create our destinies –

Watch your thoughts; they become words.
Be careful with your words; they become actions.
Watch your actions; they become habits.
Watch your clothes; they become a character.
Watch your figure; for it will become your destiny.

– Lao Tzu

You are what your deep, driving desire is.
What is your desire is your will.
As is your will, so is your deed.
As is your action, so is your destiny.

– Brihadaranyaka Upanishad

For better or worse, investing follows no other path.

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