When it comes to investing, why are we so blind?
We have all the answers right in front of us, but we can't see it.
We've been told how to invest, and there are so many successful investors we can follow, and yet, 90% of us failed at investing.
I am going to tell you a story, a story of great significant...
In the ancient time, there is a king who really loved the game of chess.
He was a decent player, and he would love to play with expert players to hone his skills.
However, there is one condition...
There is a huge reward of 10 Gold coins(equivalent of $100,000 today) when you beat the king in the game of chess.
On the other hand, there is a terrible consequence when you lose...
You have to amputate your left hand upon losing the game.
Many experts have tried and loss playing with the king. Not because their skills are unmatched against the king, but mostly because the fear of losing a hand is preventing them from performing normally.
The king didn't actually cut off these expert's hand upon winning, but he does enjoy winning the game against these high ranking chess players.
One day, he was challenged by a blind chess player.
The blind chess player play by memory, memorizing each move, and act with what he remember.
No matter how many times he play against him, the king just couldn't seem to win...
He gave up, finally...
The king then ask the blind chess player...
"How come you're so consistent with your performance? other chess expert are losing left and right because they're afraid... Why aren't you afraid?"
The blind chess player then speak confidently:
"Your majesty, I am a blind person, chess is the only thing I know and do well. If I lose in chess, it means I loss the ability to make a living and I'll have to starve."
"So each time I play, I bet my entire life into the game, losing an arm is just not that much of a deal."
When it comes to trading, do we have this kind of commitment when we picked the right stock?
Are we able to fully invest into our stock and stay with it until it profits?
Stocks doesn't always profit when you buy, and it usually takes months or years.
Can we stay consistent when the stock fell 50%? when fear kicks in?
Like the great Warren Buffett used to say:
"Don't buy a stock because you think it'll go up in price, buy the stock because you want to own the company! Forever!"
Unlike Buffet, we always lose money in the stock market because we buy a stock thinking it'll go up in price.
How you think about stocks determine you are a success, or a failure.
For your reference only!
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