After 30 years of trading, I think that the most valuable lessons that I can offer other investors are about the MISTAKES to avoid. Sure, I can show you the best strategies and investment techniques that can make you money. But that will only take you so far.
You also need to know about the pitfalls to avoid.
It’s like driving a car. Knowing how to put the car in first and drive is one thing, but it’s not the whole picture.
To be a good driver, it’s just as important to know about the things that you should NOT be doing. It’s the same with trading. The “Don’t Do” lessons are of equal importance to the “Must Do” lessons.
One of those lessons is never to focus on others.
It’s natural to compare yourself to others. It’s normal to think about other people who are trying to make money. How are they doing? What are they investing in? What strategies are they following? Which stocks are they buying?
How much money are they making?
But this is a mistake.
You should focus on your own game. It’s your own journey, and everybody is unique. Just because somebody appears to be doing better than you, don’t worry about it. You don’t know the full picture.
You don’t know how much risk they are taking. You don’t know how long their ‘winning run’ will last for.
It’s especially important to think only about yourself and your own journey, when you’re doing well.
If you’re making money, then why worry about others? If your portfolio is growing nicely year-on-year, then just keep doing what you’re doing.
Don’t think about anyone else.
Don’t look over your shoulder and think about who’s coming up behind you. Let them run their race, and you run yours.
Because if you think about others, then you’re going to lose your most precious commodity in investing, which is your attention. Your attention is needed on YOUR portfolio, the risks, and the opportunities.
You can’t split that attention. You can’t afford to dilute the attention. Your portfolio needs 100% of your attention.
Keep your eyes focused on the finishing line ahead.
Don’t look around, don’t look back at who’s behind you.
Because if you do, you will surely land on your face.
How do I know? Well, because it happened to me, quite literally.
I was headed for the finishing line. I was in pole position. I was winning the race.
And then, just for a split-second, I turned to look over my shoulder at what was coming up behind me.
It was no more than a fleeting glance, but that’s all that was needed.
My attention was gone. My focus was gone. And unfortunately, so was my balance.
Ha, ha….Don’t worry – it will all make sense.
For a little lighthearted reading, here’s the full report.
Click to open the full report:
Focus on yourself, not on others
And if you want a little light-hearted humour, watch the short video.