How to master Game of Stocks?
I have always been good with games. Not because I would be smarter or better than other players, but because I have been willing to sacrifice more time and see more effort to master the game better than other players. I am a very competitive person, and I hate losing. Hundreds, if not thousands, of video game players, have proved my desire to win in various games. Whatever it takes has been my attitude to be the best.
But this game of stock picking was not a typical game I was used to in video games. It took some time to understand how to play this game and understand the fact in this game that I am not competing against other investors. In this game, I have only two opponents which to fight. The first one is Mr. Index, and the second one is yourself.
In this game, I had to leave my strength areas and create a strategy. My way would have been a lot easier if I was investing my money in index funds. Would I change anything if I could choose again? No! I would not because, despite all the effort, I have learned an enormous amount of new useful information.
Although I have been doing this for years, I will regularly learn new things and ideas. There is not an end game in this game. I also need to be careful with all the information, because recently the amount of information and new ideas has exploded. Social media, Youtube, and various forums are full of new investors who are full of self-confidence. I am not surprised by that because the past year has been great for many investors. I am just worried about where this is all leading.
I do not want to go deeper now to go through my strategy of how I invest. I will do it another time. Also, I don’t want to start telling you how you should make your investments or give tips because I can be just as wrong as right. Every person has a responsibility for where they invest their money, and in the end, they can blame only themselves if they make bad investments. For this reason, I have been concerned about the current trend when new investors are buying shares without even basic research of the companies.
I have no idea where the current market is going. I am afraid that at some point the history will repeat itself. How to prepare for the changing market environment in the future? This one is a good question which I will be writing more about in the future, but in short, my strategy is that I’m ready for anything whatever may happen. I am confident that my portfolio will perform well in the future, even if the market momentarily collapses. Whatever happens, I try to stick to my strategy.
When I am researching the different companies, my main idea is that their stocks are more valuable in the future than they are today. I also keep in mind that I’m not buying a stock price but the business itself. Stock prices are all the time moving and are also greatly influenced by external factors in the market. However, if the company’s business is growing, the stock course will usually follow it sooner or later. For this reason, I will try to always invest in a great business with a longer perspective.
Internet is full of these “buy this stock and do this” blogs, and I do not want to start writing what you should do or not do. I want to write about my views and thoughts, and I hope these can help you make better choices in the stock market. It is good to remember that when someone offers you easy money, it is usually a scam.