I have been in Equity market for last 20 years and have experienced multiple ups and downs. Bought all sorts of company shares. However, one of the prominent psychology stands out is about the experience is the ‘Selling’ mentality.
In my observation, whenever I buy a company share having ‘Sell’ in mind, I felt like typical trading or say, - speculation. How true is, that? A Trader is a firm believer in price movement and looks for opportunities to ‘sell’ as soon as meets target. Already, ‘Exit’ decided!
Though I used to practice Valuation principles, I failed to distinguish when I was doing Investment and when Trading. It certainly cost me in losses, and/or opportunity cost, stress and what’s not.
It may be the way an Investor becomes mature over the period, and understands own biases. Believe me, it takes a lot of patience, learning and introspection of Self, Company and psychology towards Market price movement. Though the whole game sounds easy only a few decisions, viz. –
Not to buy
Buy
Hold
Sell
I suggest building your own principles and bring discipline to stick to them in the early journey of your investment. It would help you in a long journey.
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