Stock Market Investing Strategy (fidelity.com)
Published: January 4, 2022
In the stock market, the most important organ is the stomach. It’s not the brain.
Understand what you own.
No use of checking everyday or getting stock calls. It doesn’t work. Understand what you invest in. You need to check quarterly reports, see if finances are in place. So when it falls, you can gauge if it’s moment of panic or buying opportunity.
Understand the bear market is going to come, correction is always there. It’s inevitable. He tells at time of video during 93 years of market, there was 10% falling(correction) 50 times. There was 25% falling(Bear market) of market almost ~6 years. List_of_stock_market_crashes_and_bear_markets If you understand what you own, then you will have stomach for it.
When to sell the stock
When you understand what you own, it becomes easier. If you still see room for growth continue, even if 5x, 10x stock has grown. When you don’t see the growth, because you know it.
Criteria for investing
- Choose less-debt companies.
- Don’t invest with 1- 2 years in horizon. Have outlook of 10, 20 or 30 years.
- You don’t need many multi-bagger, only few for making lot of money.
- Don’t fall for how bad it can go. It can go fruther low and to the point of crash.
- Don’t keep stocks like family, treat them like utility.
- Stock goes up, I must right. Stock goes down, it must be wrong. This is wrong mindset