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Reverse Your Psychology
Today, I’d like to share with you two golden lessons in investing in the stock market.
Two very simple, very radical, golden lessons.
If you master these two lessons, your journey to wealth is almost guaranteed.
Are you ready?
Here they are:
Lesson 1: When your stocks go up, be sad.
Lesson 2: When your stocks go down, be happy.
I know they sound insane.
But bear with me...
Lesson 1: When Your Stocks Are Up, Be Sad
Why be sad?
Because many times, you won’t sell anyway. (If it doesn’t reach our Target Price, we don’t sell, right?)
So why be happy if it goes up? It just looks nice that there’s positive growth in our investments. But it doesn’t matter if you don’t sell.
The only thing that matters is how much you can buy today. And since the stocks are up, you’ll be buying at a high price.
That’s why you’re sad.
Lesson 2: When Your Stocks Are Down, Be Happy
In the same way, when the stocks are down, and you see a negative in your total investments—that doesn’t matter. Because you won’t sell anyway. (You know it’ll go up in the future, so don’t let the negative bother you.)
The only thing that matters is how much you can buy today. And since the stocks are down, you’ll be buying at a low price.
Yeheey!
We’re investors, not traders.
Traders think the very opposite: They’re happy when their stocks are up and sad when they’re stocks are down.
In our next issue of Stock Updates, I’ll compare the earnings of very good traders and very good investors (like us!).
Watch for it.
May your dreams come true,
Bo Sanchez
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