Learn from your mistakes. The only way to avoid mistakes is not to invest—which is the biggest mistake of all. So, forgive yourself for errors…and certainly don’t try to recoup your losses by taking bigger risks. Instead, turn each mistake into a learning experience.
Aggressively monitor your investments. Remember, no investment is forever. Expect and react to change. And there are no stocks that you can buy and forget. Being relaxed… doesn’t mean being complacent.
As investor who has all the answers doesn’t even understand all the questions. A cocksure approach to investing will lead, probably sooner than later, to disappointment, if not outright disaster…the wise investor recognises that success is a process of continually seeking answers to new questions.
Remain fl exible and open-minded about types of investment. There are times to buy blue chip stocks, cyclical stocks, convertible bonds… And there are times to sit on cash. The fact is that there is no one kind of investment that is always best.
Don’t panic. Sometimes you won’t have sold when everyone else is buying and you will be caught in a market crash. Don’t rush to sell the next day…instead, study your portfolio…if you can’t fi nd more attractive stocks, hold on to what you have.
