“In investing, what is comfortable is rarely profitable.” – Robert Arnott At times, you will have to step out of your comfort zone to realize significant gains. Know the boundaries of your comfort zone and practice stepping out of it in small doses. As much as you need to know the market, you need to know yourself too. Can you handle staying in when everyone else is jumping ship? Or getting out during the biggest rally of the century? There’s no room for pride in this kind of self-analysis. The best investment strategy can turn into the worst if you don’t have the stomach to see it through.
“Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas.” – Paul Samuelson If you think investing is gambling, you’re doing it wrong. The work involved requires planning and patience. However, the gains you see over time are indeed exciting! (For more reasons to be patient, check out Patience Is A Trader’s Virtue.)
“The individual investor should act consistently as an investor and not as a speculator.” – Ben Graham You are an investor, not someone who can predict the future. Base your decisions on real facts and analysis rather than risky, speculative forecasts.