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

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One Question to Ask

To have the discipline in investing, it is as simple as just ask yourself one question.

“Why did I invest in this company?”

Many times with the reminder of why you made the investment in the first place, would give you the confidence in making the next move.

You may need to exit your investment and take the loss because the reason to why you invest in the company no longer exists.

You may continue to hold the positions because the reasons are still around.

You may even consider buying more shares because the price have moved so low that you feel it is worth getting more!

The Bottom Line

Discipline in investment is something that is not easy to grasp. Many a times I am still being worried by how the market is doing and would start thinking if I should just go flat in my investments and wait for a better opportunity.

A quote from a movie I just watched, The Good Dinosaur.

If you ain’t scared, you ain’t alive.

We are all humans. We will always be worried whenever the market moves against us. However, it is discipline that keeps our investments alive.

Next time when the market turns against you, ask yourself the question on why you had made the investment in the first place. You will be surprised that you will stop worrying and start to see opportunities opening for you to invest more in the market.

Feature image “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

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