What knowledge would make you more comfortable investing in the stock market?

Posted By Scott Philips On Wednesday, December 21st, 2016 With 0 Comments

Knowledge doesn’t make you comfortable, knowledge makes you think you know what is going to happen in the future.

Newsflash – you don’t know the future, nether does Buffet, Soros, me or anyone.

Being comfortable with uncertainty and willing to feel any emotion is enormously helpful in investing. Those who are unwilling to feel the shame of loss, invariably blow up their accounts with a bad trade they are unwilling to let go of. Those who are unwilling to feel powerless over the market invariably ignore evidence that the market is not doing what they think it’s about to.

Trading/Investing is a skill. It can be learned, like tennis, or chess, or playing the piano. If you want to get good at it, approach it like you wanted to be a golf pro.

If you decided at a young age you wanted to be a golf pro you would not just randomly go out and play a round every day. You might improve a bit, but to really get good you would need to approach getting better in a very structured and focused way. You would probably need a coach or at least a mentor. You would need to measure your progress and review it.

Investing is pretty similar.

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