Sunday, April 20, 2008

Don't wanna fail? Stock market is not your playground

I'm not a sport fanatic. However, I understand that in any game there is an equal chance to failure and success. If you can't appreciate this, stock market is not your play ground.

I never lost any money since I started earning in 1998. I never made any mistake on financial investments. Well, this is not true anymore. I did some investment mistakes when selecting stocks. My losses piled up when I failed to admit my failure. I saw the value of my portfolio going down everyday like water falling from the mountain top. I do not want to sell the stocks for a loss. I held them until I lost up to 30% of my investment. Thats when, I realized that I should let go my ego and admit my failure. Since I had started small with stocks, the mistake didn't hurt me a lot. However, it is a lesson well learned.

If you don't want to loose, stock market is not your play ground. For every stock that you buy there is a 50% chance of success and a 50% chance of failure. By doing your home work, you can maximize the probability of success. But there are always factors that are beyond your control, that may influence your portfolio. Don't wait long enough to admit your failure. Being honest can punish you in the short term but will reward you in the long run.

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