What does an investor usually do? What to do, while our money is working?
Firefighters are fighting fire, doctors are curing patients, but what does an investor do?
Investing in many type of financial vehicles, then anticipating a positive return, hopefully also aiming to beat inflation and market averages.
Right, but that is something actually the market does, the values, returns and other metrics change, so most of the time an investor is actually waiting to see if the setup is working, then furthermore studying, checking markets and always making small corrections. Just like driving a ship or any other vehicle.
So as a small investor, what should we do, when our investments are in good position and we just need time to pass by? Shall we just check our investments and the market in 6 months, 1-2-5 years from now? Shall we check it several times per day?
I don’t know the answer, I don’t think anyone does. I think the answer actually varies from person to person. Depends on how easily our hands are shaken by markets. Can we stick to our initial plan (because an investor should have a plan), can we fight our emotions when the markets are taking a nosedive jump or when everything is sparkling and our greed is knocking on our doors?
I tried not to look at my stocks for a day. I think I lasted for 5 hours in between the market open and close. It felt good. I was able to concentrate and focus on other things.
But when I started I didn’t know what to do. I was asking myself, how I could become a better investor, while my investments are still shaping to succeed or fail.
I had the below ideas:
– focus on building personality, on sharpening the force of will
– read articles and books generally on investing and learn, also memorize and later use new tactics, tools and strategies in real life. I just bought Essentialism by Greg McKeown. I pretty much enjoyed Robert T. Kiyosaki’s books so far (Rich Dad, Poor Dad).
– starting an investing game, like virtual stock market game
I think all the above is very useful. I think what very useful can be is the virtual stock market game. Having several portfolios and trying out different strategies, having our risk taker personality match our rule follower one.
So I can recommend to use time, as time is also an asset we all have, but usually never value enough.