You buy a stock at $30 or a piece of property for $300k.
The stock goes down to $26.5 or your property trades at $265k so you remind yourself next time to be more patient.
Next time comes around, and you wait for prices to fall further, but they never do.
Opportunity missed.
The stock goes down to $26.5 or your property trades at $265k so you remind yourself next time to be more patient.
Next time comes around, and you wait for prices to fall further, but they never do.
Opportunity missed.
This time, you remind yourself that you should not wait so long again, because too much patience has its price.
Eventually, another correction in asset prices comes around. Instead of patiently waiting too long, you decide after a certain point, it's time to buy.
But prices...
Eventually, another correction in asset prices comes around. Instead of patiently waiting too long, you decide after a certain point, it's time to buy.
But prices...
...keep sinking lower & lower after your purchase.
And then, a correction turns into a full-blown crash!
Prices decline so much further than you ever envisioned —not that you did any case scenario analysis anyway (because it's easier to act on hot trends & recent tips).
And then, a correction turns into a full-blown crash!
Prices decline so much further than you ever envisioned —not that you did any case scenario analysis anyway (because it's easier to act on hot trends & recent tips).
You swear on your (un)born children that you've learned the lessons & fallacies.
The next time around you will wait out the panic selling. You will wait for that final capitulation.
And then the bull market artificially controlled by central bankers comes around and...
The next time around you will wait out the panic selling. You will wait for that final capitulation.
And then the bull market artificially controlled by central bankers comes around and...
...despite being a seasoned investor with plenty of experience & patience (by this point),
your prudence & discipline is not rewarded while all of those around you make fast money by buying "any-old-thing" & are rewarded beyond belief, despite ignorance & lack of experience.
your prudence & discipline is not rewarded while all of those around you make fast money by buying "any-old-thing" & are rewarded beyond belief, despite ignorance & lack of experience.
You watch this madness go on, as weeks turn to months & months to years.
Eventually, after many years pass, you cannot take it anymore, you throw in the towel & join the speculative party.
What a great way to invest. So who is in charge of decision making? You or your emotions?
Eventually, after many years pass, you cannot take it anymore, you throw in the towel & join the speculative party.
What a great way to invest. So who is in charge of decision making? You or your emotions?
p.s.
What happens after you join the speculative party?
Does one finally arrive into the promised land?
😂
What happens after you join the speculative party?
Does one finally arrive into the promised land?
😂
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