What's the difference between stubbornness and conviction? I was linked to this thread in Wallstraits by musicwhiz, but it was during one of those walks, with the pettering and pattering of the rain hitting my umbrella that I thought a little more deeply about this.
Let's give a scenario to this. I researched in company X and after months of research, I finally bought into company X at a price that I deemed attractive. The price of company X subsequently dropped to 50% of my buy price. If you've been in the stock market for some time, you'll realise that people always have opinions about the stock you're holding. It's good, it's dangerous, there's better buys, sell now, hold first, reaching support, touching resistance...those sort of opinions. Now what if some dear friend of mine told me to sell company X and I refused?
Am I stubborn or am I fully convinced of my investing prowess?
If there's a short answer, I'll say it depends. It depends on the timeframe that one is talking about and the outcome. In the short run, I might have lost 50% of my capital when the price sank 50% from my buying price, but who dares to say that the stock will never become a double or triple bagger in the future? Conversely, who dares to say that the stock will never go belly up and I'll lose 100% of my capital?
Read more...What's the difference between stubbornness and conviction? I was linked to this thread in Wallstraits by musicwhiz, but it was during one of those walks, with the pettering and pattering of the rain hitting my umbrella that I thought a little more deeply about this.
Let's give a scenario to this. I researched in company X and after months of research, I finally bought into company X at a price that I deemed attractive. The price of company X subsequently dropped to 50% of my buy price. If you've been in the stock market for some time, you'll realise that people always have opinions about the stock you're holding. It's good, it's dangerous, there's better buys, sell now, hold first, reaching support, touching resistance...those sort of opinions. Now what if some dear friend of mine told me to sell company X and I refused?
Am I stubborn or am I fully convinced of my investing prowess?
If there's a short answer, I'll say it depends. It depends on the timeframe that one is talking about and the outcome. In the short run, I might have lost 50% of my capital when the price sank 50% from my buying price, but who dares to say that the stock will never become a double or triple bagger in the future? Conversely, who dares to say that the stock will never go belly up and I'll lose 100% of my capital?
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