Thursday, October 18, 2007
Fear!!
Fear is definitely one of the hurdles for investors. I think, many investors who cannot have good performance because of their fear. They may easily believe any negative news, rumors, or uncertain economic factors; thus, they may be easily impacted by the decline of their stocks price than roughly sell their stock. However, the decline may be just a short phenomenon. Take my own experience as an example. Two weeks ago, because of the decline of oil price, my Exxon Mobil dropped about $5. Actually it is not a big amount of money. However, I was affraid that the stock price will kept going down so I sold the position. However, after a short perid, it price unexpectedly goes up. Until today, its price is much higher than what I sold before. Therefore, in my opinion, trust your company is very important. I remember professor told us in the class, you only buy the company that you believe. I feel so pity. If I can overcome my fear, maybe today I can earn more.
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3 comments:
I feel fear too. Maybe I don't have a sense of confidence.
Considering fear a common sense, if someone has a stronger faith and confident one's decision, that person will earn money.
If you follow the way that buffet does on his investment, you can see that he selects the stocks very carefully and holds the stocks for a long time. I think the best way to do the investment is the way that Buffet did.
Actually, i reviewed all the transactions of the stock that i did (in Taiwan), i found the transactions that brings me the best performances are the stocks that i chose carfully and hold for long time. It almost too long that i don't even remember that i owned those stocks!! So according to my experience, the best way is to buy the stock (carefully select!!) and forget you owns it!!
Thanks Mandy
That's a good advice.
I will choose investment carefully and forget it!
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