2020 was a complicated year which encountered both huge loss, pain, horror, darkness, but also changes, opportunities, hope, and love. This year, I started investing officially and get an amazing result at the end of the year. (103% return)
Here are the 7 things I summarized based on my portfolio. It is something I will constantly review to remind myself. Also, I hope it can bring some inspiration to others.
The reason that I bought all those good stock or assets is that I tracked information from those good KOLs. They are people I really appreciated from the thinking/mental intelligence perspectives. They are from Twitter, from Weibo, from internet, from books. e.g I bought Tesla because I read articles from Chuan Wang about how he views Tesla. In the article, he explained Tesla's huge advantage and how it will become the most valuable company in the world. Copy cat is a good way for me to start. And Twitter is really a good information platform where you can find good quality resources there.
If you follow the right person which means you will immerse into good quality of information daily, for the long time of period, it will create huge differences/gap between you and others.
I encountered all those mental struggles when comes to investment.
I start my investment about $1000 per month. Though it is still not a small number to me, but I do feel more relax when I just have hundred or thousands in hand. When seeing the stock price going down, I don't hesitate to add more shares and when seeing the number floating up and down, it didn't cause great ripples for me. But everything changes when it comes to a large amount of money. I sell early for a huge amount of coins and it went to 2X price at the end, it really frustrated me and I kept complaining about myself.
But later I started to realize 2 things:
One-I need to have principle: 1) what is the my goal for this asset 2)if I reach this goal, no matter how it goes up later, I shouldn't be regret 3)If it not reach my goal, think why. 4)Implement it firmly
Two-There should also have strategy to large amount of money investment: batch investment or invest at once etc
And seeing the prices going up made me want to buy more even in the highest price vs losing interest to a good asset when the price went down. Not patient and stable at all.
All those mental traps is a life-long learning process.