2023 is coming to an end. Regardless of whether you have made money in the stock market or not. This year will leave regrets. Frustration in the back of the mouth. Just like other years. Because even with a double-digit performance, the investor will always decide to see the glass half empty. To see what he missed. He sold the shares too early. Instead of looking at the financial disasters that he was able to avoid by choice or luck.
2023 is a year where we may very well have a poor performance, while in the end we have had very few bad choices and many good ones. There have been serious shoots with bearish gaps where we can only see the damage.
You may also have had your best year by knowing how to follow the signals and stick with what works during the 3 periods of the year that you should be present.
In the end, this year’s performance took place over 3 months. 9 was only used for the construction of the various movements. A phase at the beginning of the year. A phase in the summer and a final phase at the end of the year.
So when we take stock. Many people wonder how to better invest in the stock market.
How to earn more. More often. To have quite often. Do not doubt.
The end of the year is an opportunity to take stock. Finally, every year I talk to many investors about their balance sheet.
And you know what comes up most often?
Of course performance is important. We measure ourselves by results.
But here I see a real trigger happening for these investors. This is when it doesn’t matter how well they performed for the year.
They tell me they were Zen.
In line with their profile. Have control over their emotions. By following their plan, avoid doubts, avoid big problems.
Because winning in the stock market, we mistakenly think, means making big moves. Big stakes. Hollywood is terrible at this.
Because shows you the few rare times guys got rich on an idea.
But we forget all those who are destroyed by using the same all-in-principle. No movie about them. It is not a seller.
But above all, it is knowing how to avoid large bowls.
And enjoy trading your investment choices.
This is what will pay off in the long run.
Which allowed me to make my biggest gains in the stock market. It’s about not worrying about it.
But worrying above all about rendering my approach. To ensure that no trade can make me rich.
For if he has the power to make me rich, he has the power to make me poor.
But above all, the power to make me stress, lose my funds, let my emotions take over the business.
I am nothing more than a beginner who has not learned any of the lessons of the stock market as soon as my positions are too big and go against me. And this despite 20 years of experience.
That is the only lesson to learn.
Manage your position sizes, repeat your approach, recognize the configurations and businesses that make us win. Reduce behaviors that cause us to take large bowls. Every year we avoid more and more.
Winning is above all learning not to lose your winnings. To put yourself in the best possible position. The best configurations according to our profile and with the right position size.
This type of trading allows you to be zen. Has control over himself and position.
And if we are in control, then we let our traders live easier, we earn more. We multiply good deals and, above all, trust.
I also recommend, if you can, on your stockbroker, to remove the earnings column in euros or push it out of view when looking at your portfolio.
Honestly, how much money was lost just because we wanted to arrive at a rounded account of earnings in euros? This euro pillar has too much influence. I leave only the percentage.
I will remove any connection with money. Repeat trade after trade like a robot whose representation of money is synonymous with nothing.
We focus on the process. No on earnings. They will come by themselves if we continue to do what works for us.
So yes sometimes you will earn less than the market. You will say to yourself, all that for that. But the real satisfaction is to have been in control all year round.
To avoid large bowls. To be there with your capital to do better next year by continuing to focus on your approach. The one that allows you to be Zen, with confidence.
a famous fund manager who has beaten the market for 25 years explains that he expects to underperform the market one year out of three. It means everything to me. You have to put on the pressure to always do better than the market, to beat it, otherwise you’re worthless.
And for me this involves choosing the right actions, the right files. A predefined list of approximately 50 titles depending on your profile or ETF. Then throughout the year depending on available time, entries and exits from this list according to basic and graphical configurations.
To win in the stock market, you must avoid wanting to win big in a few trades or in a short period of time.
It should be fun.
And we enjoy when we are in self-control. And we are in self-control when we take many small bets instead of big ones that never get us to stick to the original plan anyway.
That is, quality actions. Patience to enter an attractive valuation level and prices. Ideal position sizes of 3-5% as long as the market does not give us reason to accumulate large amounts of latent capital gain, never latent capital loss.
These are rules that allow me to earn maybe less than when I started as a percentage, but allow me to be even more zen each year and less and less to follow my investments closely.
So of course you have to learn to respect the rules to better break them.
Know when conditions are favorable to bet bigger, concentrate your portfolio more. But this comes with time, and especially when you’re already sitting on a cushion of winnings.
It is only there that I allow myself to break the rules. As long as this is not the case, it is an optimal level of discipline required by accepting not to be in all the right places, but to wait for the most favorable conditions for oneself.
Invest. Investing well is all about having a plan. And then have the patience to execute it as such.
I recommend this article to go further:
25 tips to win in the stock market from a market magician
Over the next few days I will share with you my list of favorite stocks for 2024 as well as the opportunity to join the Graph Academy to work towards your personal stock market trigger just like many other investors before you.
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