Investing in the financial market is more about psychology than intelligence

Investing in the financial market is more about psychology than intelligence


Dear Friends,

As I am gaining more and more learnings and experiences in the stock market, this is what I realised...

Investing in the stock market is more about psychology than intelligence.

It matters less how intelligent we are indeed, and more about...

1. How we behave when the market rises.
2. How we cope up with our emotions when the market falls.
3. How patiently we wait.
4. Whether we can think clearly when everyone else is acting driven on emotion.


These factors only determine long-term investment success.

Successful investing is not about...

- Having a high IQ.
- Being constantly active or frantic.
- Predicting the next market's directional move

Instead, it is all about...

1. Emotional discipline.
2. Enormous Patience.
3. Independent thinking.
4. A mindset that controls greed and fear.
5. The maturity to accept uncertainty.
6. The discipline to consistently follow a process.
7. The willingness to admit and accept mistakes.
8. The patience to allow compounding to work over time.

Ultimately, the greatest truth that I realized is this...

We are not only competing against the stock market.
We are competing against our own thoughts.

Happy investing time friends!

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