Wednesday 8 August 2018

Overcome the Investor

 Overcome the Investor's Worst Enemy
To paraphrase legendary investor, Ben Graham, the investor's worst enemy is often himself. Perhaps the biggest mistake an investor can make is allow themselves to be blinded by damaging emotions, such as fear, greed, anxiety, and desire for control, all of which can be minimized or neutralized by the virtues of humility and patience.

When you make decisions knowing it is impossible to "outsmart the market" and you realize that results are not often instantaneous, you begin to reduce the odds of making poor decisions, which are usually those that are based upon emotion.

  1. These poor decisions can come from outside sources, such as financial media. 
  2. Are you reading articles that press emotional buttons, such as "How to Get Rich Quick With Market Timing"? 
  3. information consumption as fact-based as possible. 
  4. But if you feel the need to stay connected with a site that likes to provoke emotion, be sure you balance it with another source that is more reality-based.


Index Gainers for this week: Pharma stocks (+5%), PSU Bank (+4.7%), Energy index (+3.5%), Metals index (+2.5%), Realty index (+1%), FMCG index (+2.2%), IT index (+1%). Markets are expected to continue volatile next week, even as the last leg of the earnings season continues.

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