Thread by @Finstor85

Some very important, intangible, topics that investors rarely see.

1. Making money is secondary to ensuring you don't bleed out on drawdown phases.

2. If you get pushed down 30-40% in every phase from the cost, it means roughly you get pushed 12-18 months on your financial independence goal. If you get pushed like this often, you won't even realize when goalpost moved from 45y to 55y on your financial independence graph

3. Nobody knows market peak. Important is to look at your PF & ask - am I playing Sehwag when I have to draw the test, or am I playing Dravid/Pujara.

4. Drawdown are very common. Those are opportunities to buy good scrips provided your entry wasn't when the scrip became crowded trade.

5. Your investment decision with fresh capital should be with following context
- Consensus
- Most love/most hated
- Broader market situation

6. I poured in the most capital in my life when we crashed in Mar 2020. Kept buying till May'20. But all recent buys are always filtered on the above metric or my setup

7. Finally, price also gives you info. as important as any funda would. If you think price is only for traders, pl open your mind. It can save you a lot when things are over heated.
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