Status: Tags: Links: 085 Finances MOC
Investing
Success in the stock market is largely dependent on our choices and our character rather than the stocks themselves.
Principles
- DON’T BE GREEDY
- Doing Due Dilligence
- Types of Stocks
- Patient, disciplined, eager to learn, has self-control over their emotions, and is able to think for themselves
- Listening to others and following the crowd instead of thinking for yourself can lead you to failure
- Create and stick to a sound and logical plan
- Avoid being influenced by emotion
- Maximize sustainable profits
- Strive for adequate returns, rather than extraordinary returns
- Control harmful behavior
- Know the difference between an investor and a speculator
- Speculation is fun and rewarding, but it is the worst way to build one’s wealth
- Know the types of investing strategies:
- Diversify positions
- Trim positions to only 5-10%, put rest into VEQT/XEQT
- Know when a stock should truly be held long-term vs short-term
- Don’t be afraid to sell during unexpected returns
Tips
- Copy/study successful traders
- Practice new strategy in a demo account before using real money
- Wait until you have a high win%, learn from errors
- Scale up slowly
- XEQT vs VFV
Market Principles
- prices reflect people’s expectations, so they go up when actual results are better than expected and they go down when they are worse than expected
- Consistently beating the stock market is extremely difficult
- The physical growth of a company does not always correlate with the stock growth of a company
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