When I was younger I was terrible with money. And I was never able to save or start up a 401K or Roth IRA. I guess getting older (and having experienced financial hardships) can progress to wisdom, as I have learned some hard lessons when it comes to managing money; for one, having credit card debt is EVIL. Whether it’s a 5% or 25% interest rate, having a huge balance on your credit card is a tough one to overcome and could take years, and decades to pay off.
The Power of Yoga & Meditation
But, I have always believed in the power of Yoga and Meditation as a therapy and a way to seek out wisdom. Especially in trading stocks and investing, it takes a mindful calmness with clarity to formulate a good strategy when investing in the stock market. Otherwise, if one doesn’t have a plan of execution, then the stock market end’s up being just one big gambling machine.
Yin and Yang
Yin and Yang is the universal law of opposites, as based in Eastern Philosophy. The stock market is the epitome of Yin and Yang. There are losers and winners on the stock market, and it’s just a matter of doing whatever research is needed in order to seek out the winners. Technical Analysis helps, although it is just a tool. A hammer alone can’t find the nail, so it is how you work the hammer that allows one to achieve the goal.
Diversification is Key
The basics of stock investing is to diversify your portfolio of stocks. We all know the old adage of putting all your eggs in one basket, and this definitely applies to stocks. Diversify! Buy different types of company stocks in different sectors. And my recommendation is always to do your research and pick 3-5 stocks to start off. Just make sure they are in different sectors; like one stock in the high tech sector, one in the financial sector, and one in the health sector. For starters, make sure your first stocks are extremely successful companies that have a proven track record. The obvious ones are Apple (AAPL) and Microsoft (MSFT). Investing right away in company’s that are risky in order to win big is just like gambling; you’ll only be asking for trouble because the tendency is to put all your money into that one stock for big rewards. Trust me, the odds are not in your favor.
Companies with Wide Moats
Invest in stocks that have a lot of growth potential, especially when starting out small. If a stock has a great track record, hold long and forget about it. These types of stocks are destined to go up in price based on its momentum, something innovative that the company has to offer, and has a lot of positive news around it. In other words, like billionaire investor Warren Buffett has said, make sure the company has a wide moat around it to protect it from competitors.
I personally meditate daily. It has helped me be less anxious and have that clarity of mind that’s important in investing, and dare I say, meditation and visualization helps one get lucky in picking great stocks. Almost like getting a sixth sense for trading. Why is this? All I can say is that when the mind is clear, well-thought decisions are easier to come by.
Learn all you can about investing and trading stocks. And it is wise on many occasions to do nothing with your portfolio in order to watch it grow. Patience and fortitude are key ingredients to success.
Find Your Style
Everyone is different. You might feel comfortable trading on a mobile app like Robinhood, or you might want to build a customized setup with several monitors, utilizing an advanced trading platform. Only you can figure out what works best for you. I recently built my own custom trading station and I tweaked and customized my trading software to fit my preferences and needs. It’s easy to setup a Multiple Monitor System with a Macbook Pro, and they have various multiple monitor stands to fit whatever setup you decide on.
Success On Your Own Terms
Lastly, let trading and investing become a passion and a joy, and not something you dread, or something that causes you much stress and anxiety. Know your thresholds and your limits. Better to succeed in small increments than to fail miserably.