In order to become good in your art and succeed, one needs to keep an open mind, commit to continuous learning, and reflect back to check your tracks and direction. In investing and individual portfolio management, while it is important to understand PE ratios, correlations, book values, etc., it is also equally important to focus of our behavioral characteristics. Discussed below are three characteristics that I have learnt play big role in our investment success.
(1) Need to have well defined strategy
Individual investors who want to manage their own portfolio must have their own strategy. This should include investing style, time period, and diversified asset allocation. In addition, you also need to determine how you are going to manage it. If is based on sound investing principles, you will get good results. The well defined strategy will allow you to keep your emotions out of the picture.
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There are numerous ways to generate an income and make a decent living. I have observed that many folks consider it a panacea to discussing about investing and trading with little bit intelligence. Irrespective of whether there is substance behind it or not, it at least creates an impression of smartness and being intelligent. At personal level, I respect every style of investing and trading. But I remain skeptical in the context of applying to my own situation. I want to follow method or style what works for me. There are different styles, methods, and strategies for
Few weeks back I read an interesting comment to an article on seeking alpha; Investor’s sole objective is to maximize capital appreciation (or returns) and in doing so follow a path of minimum risk. This is not a quote but essentially what it meant. I pondered over it and came to conclusion that comments section is not a place to divulge or express the target and goal. In essence, it does sound right.



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