Lack of disciplined investment causes the most investment losses. It’s that simple. If our investment program loses money in a few years, we are likely to blame ourselves, not the economy, failure, ignorance, or failed stock prices. Time fixes these problems.
The biggest single reason for investment losses: lack of disciplined investment. Only one element cannot correct the time.
Why discipline and investing is mutually exclusive to many people who find it difficult to be disciplined about other things. For example, it is not difficult to be disciplined in games. Bending the rules is less satisfying than playing the game as it should be.
So why do we have so many problems with disciplined investment? Why should we be better than the very simple rules that govern our business or ideas successful investment programs?
Just to be sure of one of two things, you need to look at the number of people who have lost or have a weak return: the investment is a scam or a lot of people are wrong. Why should this be the case when the rules are really quite simple?
One of the problems with discipline is that no one else can tell us how it will develop. This is something we have to do for ourselves. But perhaps it helps to know in advance that disciplined investments are so difficult for so many people. At the very least, we can be prepared for the indiscipline we all know and regret.
There are several rules that are important for long-term investment success. One of them is the appropriate diversification according to your age. Another is a simple method of regular balancing, making some profit, and redistributing capital to the remaining investments (assuming you make reasonable choices in the first place). Of course there are a few, but choosing the right investment has less to do with what you think.
Patience is as important as trust in your decisions. It may sound ridiculous to an inexperienced investor who has little understanding of trust. Just take the time to learn these simple rules and you will see the mathematical certainty behind some basic rules. When you do this, you will inevitably gain all the confidence you need to stand up to future rough patches.
You have everything you need with confidence. It will allow you to bring discipline, determination and patience to the table.