Lessons from the stock market (day 269): Patience is a virtue and exercising discipline is a strength

at the start of 2012, i decided to stop looking at my portfolio every fifteen minutes, six hours a day, five days a week.  i felt i was being sucked into the thrills of the day to day trading and was starting to lose ground on what my objective was for entering the stock market in the first place.

and so i busied myself with other things and after a few months, decided to look at my stocks again.  my FGEN stock is now at 40% gain while FPH was at 25%.  the rest of the stocks have between 5-15% and about two or three that were on red.  overall, i gained more than i expected and was humbled by the realization that it pays to exercise patience when investing in equities.

what i also realized though is that it even pays more to have discipline.  on those months i decided to stop monitoring my portfolio, i also stopped infusing money into the stock market.  if i did that,  i could have taken advantage of the temporary lows in the last seven months to buy more of the blue chips.  when i finally got round to catching up, the prices of some of my desired stocks were already above my ideal purchase price.
strangely, how i behave in the stock market is almost the same as how i behave on everything else.  when the fire burns, it burns a lot and then at some point, it loses fuel and hibernates.

i kept reminding myself that i cannot afford to keep that kind of behavior now.  having a kid is fucking expensive if you want to provide your kid all the things you felt would have been awesome if you got a chance to have access to it when you are growing up.  that is saying a lot considering that i truly believe that my childhood was complete despite of the obvious lack of money.  the thing about parenthood, i found out, is that you always, always want better things for your child.

on the other side, though, investing in the stock market was not all about providing her a financially better future.  quite the contrary,  i ventured into it for a comfortable and financially sufficient retirement years for myself.  i am shit scared growing old penniless.  i have witnessed too many people in their old age who could hardly get by without some financial assistance from their kids, even after working their ass off all their lives.  i do not want to be that kind of old person. i want to be able to buy my great, grandchildren ice cream whenever they want.  and if you have done your math, any retirement package you get from the company you work for (if you are lucky to even get any) will not be enough in the next twenty years of your retirement phase.

and i guess, if we let it, we do become wiser everyday.  on the 269th day investing at the stock market, i learned that financial independence is never achieved accidentally. you dream of it. and then you work on it.

 

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