Tuesday, June 9, 2009

Before you invest … Relax

Before you even start to invest, I strongly believe that it helps to cultivate a proper attitude towards investing.

First and foremost, relax. Then relax some more. You don’t have to do anything in a hurry. Heck, you don’t even HAVE to do anything.

There is no deadline. There is no schedule. There is no boss breathing down your neck. You are not answerable to anyone (save yourself and pehaps your family). So don’t go hard on yourself. Don’t have unrealistic expectations. Just Relax. Invest at your own leisurely pace.

Why relax? Its only when you relax and are in a serene frame of your mind that you notice the benign nature of the stock market.

  • If you make a mistake, the market will give you enough opportunities to rectify the mistake.
  • If you are patient, the market will come and offer you mouth watering deals.
  • If you missed an opportunity but are still patient, the market will come and offer it again.
  • If you are observant, the market will offer you valuable insights.

The market, in the long run, taxes the impatient, implusive and emotional only to reward the patient, methodical and rational.

So think of investing as a perpetual activity. The stock market is like karma. It is perpetual. It was before you. It will be with you. It will be after you. You don’t have to conquer or win in a week, month, year or even a decade. If you think of it as game, then play it in a way that is relaxing and enjoyable.

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