Discipline in Investing

Investing is a “game” that requires a lot of discipline. As investors, we will have to be very disciplined in order not to freak ourselves out whenever the market is adjusting downwards. To be able to succeed in investment, one will have to be very disciplined so as not to close the positions when the market is being volatile.

"Discipline is the silent" by Joshua Cintron (Own work) [CC BY-SA 3.0 (http://creativecommons.org/licenses/by-sa/3.0)], via Wikimedia Commons | Investor Monkey

How many of you investors, like me, out there are being freaked out when the market drops and prices of the stocks in your investing portfolio all suddenly turns red?

Especially with the market being very volatile recently due to the rumours of the Fed increasing the interest rates, prices of stocks starts to whipsaw. The volatile market also starts to worry many investors and they start to exit their positions, cutting losses or taking profits prematurely, only to realise the price goes back to where it started a few days later.

One trick that I am using to manage volatile markets during the times when the market takes the heat boils down to one word, discipline.

Discipline in Investing

Investing is a “game” that requires a lot of discipline. As investors, we will have to be very disciplined in order not to freak ourselves out whenever the market is adjusting downwards.

How can one be discipline in investing then?

Many investors choose not to watch their portfolio every day. Though it may seem a good way not to freak oneself out when the market goes the wrong way, it is actually a very dangerous way to do.

When you are not updating yourself in what is happening to the company that you are investing in, you may not realise what had happened a few days later and the price of the stock may have drop drastically.

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