Strategy

Investing Mantras I Live By

Investing mantras to live by.  These are something I like to share now and again and since it’s been close to a year it’s time to chat about them again.

Investing Mantras I live by:

  • If something more than doubles in price in one day – SELL HALF
  • Buy the dips, sell the rips!
  • Remember, nothing HAS to happen
  • You cannot be grateful and angry at the same time

Let’s quickly dig into these one by one….

If somethings doubles in price in one day (or even a few) selling half always makes sense.  Yeah, there are instances where something will triple or more, but there are just as many when it is all given back.  Plus, when you sell half you now have your money out and still have exposure to the upside with the “house’s money.”

Buying dips and selling rips is a better blind strategy than alot of other thought out strategies in my opinion as you are generally selling at the higher end of a move and buying at the lower end.  Will that hold true all the time – hell no!  But atleast you are buying lower than if you chased something higher.

The nothing has to happen line is something I learned in recent years after decades of investing.  It doesn’t matter how much research I have to support my thesis, a market doesn’t HAVE TO DO anything.  In fact, anything can happen.

This last one listed.  You cannot be grateful and angry at the same time.  It plays well in all of life but with investing if I am grateful that I’m in a winning investment at all I will be less likely be frustrated that I didn’t buy sooner or buy more when I thought I should cus atleast I have some exposure to it as opposed to none.

Anyway, that is my mantras revisited.

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