For the past 2 years, I have been focused on improving my investing strategy. Unfortunately, I have done a terrible job documenting my process and I’ve made significant mistakes I wish I could look back and reflect on why I’ve made those decisions. Starting now, my commitment to myself is to document my journey.
Few lessons I’ve learned in the past:
- Stop “trading” and start “investing”: unless you have a robust trading model, it’s extremely difficult to time the market
- Position sizing is extremely important: never over invest in a single position. I’ve realized significant losses on BABA, UST and NFLX which the numbers/risk looks great on paper until unforeseeable circumstances drops the price by over 50%.
- Have a solid investment strategy: checking on your investments daily is extremely draining and it often ruins my mood when I’m down double digits. Instead of checking investments, have a solid process to identify investment opportunities and set alerts to when you should check your investments. Instead of following the news daily, have a process to filter out the signal vs the noise.
From current me to future me, commit to this journey and make sure I keep myself updated on a weekly basis.