Right, another (bright!) red day and I see people either talking about their losses, or asking whether to “buy” given the obviously beaten down stockprices. I’m probably too engrossed with the kids these days as we prepare for travelling, I am schooling them via “distance education” and they have lots of online resources, I’d say I am getting comfy with “instructions by cartoons” approach, and I’ve picked up a great clue from this video of “Despicable Me2”
Watch:
And in case you missed the point : Learn from a villain how to fight another villain. So in our case, learn how big market players do this business. (And to further clarify I don’t mean to say they are villains – but most people could give them that role in the bloodbath that has been happening). After all, the people hurting the most are individual or retail, mom and pop, small investors. Some are even asking me pointed questions about whether we are still in a bull run, or whether they should hold. Instead of giving you hope, you know, I thought, for the people who are committed to invest for their life goals, I’d give you the opportunity to learn and actually make the decision and analysis for yourself. I thought, I’ll assist you to have 3 critical learnings:
1. have a system
2. learn the market dynamics
3. have a comprehensive business plan
Those 3 will ensure the investor is well-equipped to do business in the stockmarket (with the interconnected financial markets). I encourage everyone to learn the most they can from what is happening in the markets, not just to ask questions or ask for tips, — remember its not the gurus who will be affected by your decision — the investor has to do their own homework, and true the prices are so cheap now, so you could consider them as “sale” prices — but the market will be volatile, so it is up to the investor how much risk he / she can tolerate and what is the exit strategy (which is part of the item 1 – System).
The volatility is part of a changing financial markets. So it’s going to be rough sailing for a while. Keep afloat.
“It is not the strongest of the species that survive, nor the most intelligent, but the ones most responsive to change.”
– Charles Darwin