Monday, May 28, 2012

Emotion in investment will take you nowhere.

Previous years I was too emotional about investment. I tend to buy on feel good factor, on my own perception. I tend to buy after reading some research report or some investment blog. Sometimes I will flip through the annual report and see what the chairman and management say about the business.
Most of the time, I didn't firstly do a thorough research of the industry and compare all the similar stock available in the markets, financially and management quality wise. I am always too afraid to miss the boat. So I held a principle that I will buy a bit now, then for I will be motivated to conduct research later if I have some stake in it. Almost all the time, I will not do the research afterwards. And the bad thing is I lost confident easily when the whole market drop. I am not sure whether the business will be affected by how much severe. So I am worried.

This year I want to clear my worry as I will sell down the unsure worried and non performing, maintain good management and prospect company, and search for good quality undervalue stock. This really require a lot of hard work and very time consuming. But, fortunately, that's my interest.

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