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Consistency creates experience and the experience improves the decision-making in investment!

Consistency creates experience and the experience improves the decision-making in investment!

Dear Friends,

Everyone who enters the stock market desires to make money. But do we possess the right mindset required for it?
Many who enter the stock market have expectations like these:
• To make money quickly.
• To earn a profit every single day.
• To discover "multi-bagger" stocks.
• To achieve financial freedom in a short span of time.
These expectations are not necessarily wrong; the desire for one’s wealth to grow is quite natural.
However, the stock market actually demands something very different from us:
• The Patience – The ability to wait, even if a stock that we’ve purchased that doesn’t go up immediately.
• The Discipline – We need to the basic investment rules we have set-iin for ourselves.
• The risk Management – ​​To prioritize the protection of our capital first, rather than focusing solely on potential profits that we anticipate at often.
• The emotional Control – To remain free from greater greed when the market rises and to avoid fear when it falls steep.
• Knowing when to do nothing – This is most important think. To Understand that there is no need to buy or sell stocks at every single day by our emotions, market sentiments and news.

When I first began my investment journey, I have learnt many different strategies from various sources. But I selected one that seemed quite suitable for me and started putting that into practice.
Initially, the "win rate" of the stocks I chose based on that strategy was only 50%.
In other words, only half of the stocks I selected performed as expected; the rest did not work out in my favor.
It is natural to feel the urge to change one’s strategy at such times. But if we abandon our strategy and system every time the results aren't favorable, what could we possibly learn from the experience?
Therefore, rather giving it up, I continued to follow the same system consistently, and making only few adjustments where it is quite necessary. I also made sure that to learn from every mistake of mine. I quietly observed the specific conditions under which the strategy performs the best.
My win rate has started to increase. This is not solely due to the strategy by itself; But with the consistency that I follow it in my way of thinking and my perspective on selecting stocks have both improved.
The most important realisation that I have gained is that only by using a strategy consistently can one develop a clear understanding of when it excels, when it fails, and what specific factors need to be monitored.
Things I previously overlooked are now clearly visible. Through experience, one’s decision-making ability also improves.
This does not mean one should follow a strategy blindly. Instead, you must need to continue to make necessary adjustments based on data and results.
Don't go with constantly searching for a new strategy at every time, just focus on gaining a deeper understanding of the one that you are currently practicing.

The consistency creates experience and in turn the experience improves the decision-making.

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