I put my investment rules based on the famous Warren Buffet's rules. Rule #1: Don't loose your money. Rule #2: See rule number 1.
I do not expect unreal: always win, never lost. The rules don't speak about: we must win. It speaks loud: don't loose. It means, I must consider the risks, before look forward the profit opportunities. If I look the opportunities before the risks, I plan to fail. I should not prepare how to care the risks. The difference between to invest and to gambling, placed on the my view of the risks. When I failed to view the risks, I will loose my money soon or later.
An important question: Can I handle the risks?
A Climber dare to climb the vertical rock hill. Why? Because he or she know how to climb. He or she know the tools for climbing. He or she know do and don't. And I think, they should practice on small hill, before climb the sky roof hill.
As same as, before I enter to a kind of invesment market, I ask myself, can I handle the kind's risk? Do I have this market's knowledges? Do I have a discipline to practicing small before trading more? What tools do I have?
Every profits cheer us, even it is just a penny. BUT, A single huge loss can make us down. I WILL NOT climb the sky roof risks, before I was expert. Instead, I WILL climb the small risks until I am expert. Well profit chasers. Do you see the risks run before you?
In the first time, I enter the stock market. I just have one goal. Make money as much as possible. Then I found, it's a dismal goal. I didn't think about the risk, the strategy, the analysis, etc. That goal just give me a dissapointed result :( While my goal was not achieved, I lost the capital. I think, this absurd goal setting is very ordinary for the first time investors.
Then, I am resetting my inside before reenter the market. I divide my preparation to four steps, those are: Mental, Vision, Strategies, Tactics. I build the positive mental. I drive my mind and say to myself, “I can”. I kick the loser mindset off. The most things, I set off the greediness and the fear. I build a mental map, called One Million Dream. The mental thing is my most important step, before I reenter to invest again. The second thing is the vision. I should have a specific goal. Rather than “make much money” goal, I change my goal. It must not result oriented, but it must process oriented. It means, my goal is to gather many knowledges and experiences to achieve one million worth. I underline words of “many knowledges and experiences”. I believe, when I've succeed in the process, the result will follow. It likes, when you have a good coffee maker, you should produce an intimated esperesso.
As my goal intended on the process, I set some strategies. I divide my process on investment and trading. There are many differences between investment and trading. Some people say that he is an investor, but actually he is a trader. Investment like to keep the wines in the wine barns. It need enough times to be worthed. Trading like the grape presses. It should has a return immediately, when I put the grape in. My most strategy, I trade in the “high risk high gain” markets to reinvest in the low to moderate risk investments. I presses the grape and save it in the wine barns. I am determined to win the one million worth war. So, I must have extraordinary strategies to achieve that.
The tactics are the chit-chat about analysis. Just you and me know, about fundamentals, technicals, flow, etc. But the most important tactic, I'm not trying to beat the markets. It's useless, very retiring, and very irritated. Instead, I'm trying to breath with the markets. Make the markets as my friend.
Success for us. Cheers :)
Tags: Goal, Investment Mindset, Strategy, Trading Plan, Trading Psychology
It was 1998, when I started to taste the stock market. It's a real new world for me. First time, I plunged into the stock market. I feel as a blind and deaf man. I don't know what I should do. I know a little bit about the fundamental and technical analysis. But, I don't know how to use it.
My first journey ended with the fatal termination. I broke down, my capital was gone. I need almost 9 years to recover. I work hard to refinancing my life. While I'm in a recovery time. I always look forward to be a good investor. Finally, here I am. Restarting to live in the investment world. I am started from zero. And I have a dream. That is! One million dollar asset as a milestone in my investment career.
What's the next milestone? I don't know. Let it be my next dream. May be one hundred million or one billion or ... Someday if you're found a one billion dream blog, it should be mine :). Now, do you have a same dream with me? Why don't we share it together. I do a path finding to achieve my one million dollar dream. And I know, my dream should be came true. So do you. Let the journey begin!
Tags: First Post, Goal, One Million Worth
