Try doing the opposite
"If only I had done the opposite, I would have been a millionaire." Have you ever had this feeling about your investment decisions?
Doesn't it seem like what you often do turns out to be a perfect loss-making strategy? Some will surely agree.
Let us reconsider a few simple facts.
Everybody herds into stock markets with an intention to make money. Nothing wrong with that.
We all think we are smart. Nothing wrong with that as well.
We also think that we can outsmart all others all the time. Well, that is something we should reconsider. Because the fact is that everyone cannot be right at the same time.
Remember that every time you buy a stock, there is someone selling at the other end. Now, this is such a ridiculously simple fact.
Yet, we so often and so easily ignore it.
Do you sit back and consider why the person at the other end is willing to do the opposite of what you're doing?
Next time you are about to invest in a stock, do this little exercise.
Ask yourself, "How about doing exactly the opposite?" In case you are planning to buy a stock, think from the seller's point of view and vice-versa.
This exercise will force you to look objectively at both the sides of the investment. If you are able to honestly ask the right questions, you will come out wiser and wealthier.
Because as said, both the parties cannot be right. Either of the two parties is acting out of greed, fear or mere ignorance.
Are you the one doing that?
If yes, then you know that the guy at the other end is smarter and doing the opposite transaction for a good reason.
In the process, you will also realise the reasons for your previous losses. And maybe with this knowledge, you can rid yourself from the loss-making exercise.