While most people actively "Trade" the stock market, I remember a book I read a while ago, by John C bogle called the "little book of common-sense investing."
The author John bogle is the founder of The Vangard group, and his insight regarding investing is second to none.
I would like to share with you some of his wisdoms.
While most of us assume that legendary investors aren't nervous when the stock market is down, or in the process of deleveraging. However, we're most likely wrong.
While John Bogle admit that he was nervous when the market is down, but he always stayed the course and never sell his stocks because fear sets in.
"Time is your friend, and impulse is your enemy." - John Bogle
I think this quote best describe Bogle's approach to the financial market.
When we're losing money in the stock market, what is the best thing we can do?
Do nothing!
When the market is down, our natural instinct is to sell and keep whatever we still have.
That is exactly why most people don't make money in the investment world.
We often forget what is more important when we invest in a company.
Not the stock price, not how many analysts recommend it, not how great it might be in the future, and definitely not how much money your friend has made from it.
The value!
How much gold you get when you paid $1000!
What did you get for the money you paid!
The earning, and dividends it generates!
Picking a good stock is NOT tough, most people lose money because they just couldn't hold on to it long enough...
If you couldn't hold on to 1 stock and try to beat the market, be the market.
As John Bogle would say:
"Don't try to find a needle in the haystack, buy the haystack!"
If you know you couldn't beat the market, just become the market.
Buy "Everything"!
S&P 500... period.