Thread by @mehrotra_saket

Often a very underappreciated and less-talked about trait in investing / trading is the behavioural psychology.

You see, having an informational edge today is no longer something that's restricted to the 'elite' or the 'inner circle'.

Read on 👇

At the click of a button, you get access to tons of data, analyst reports, investor presentations and what not.

While data helps you build conviction, it is paramount how you're able to sit on a position to make it compound to 10x / 100x while also being cognizant of the fact that there could be big drawdowns in your journey to see the wealth compound.

There have been days when I have ignored risk management practices in doing trades - stop loss, position sizing etc. only to see this blow back in a big way leading to margin calls.

While there is no 'rulebook' that defines behavioural psychology, I personally feel it's a journey that one has to go through to understand where they stand.

Figure out what you're good at and what is working for you, once you've established that - keep doubling down on that. The world is filled with millions of options and there will always be noise to keep you distracted.

Build your focus, build your psychology and build strong patience - Once you have these three pillars sorted, things will align.
#investing