Several members of my investment club often enquired about my personal story of stock market investment. Members requested me to share my lesson learned in stock trading and investment to them for everybody’s benefit.
Let me share with you the most decisive moment of my life, which make me a successful stock market investor.
I have a big dream to make million in stock trading to fulfill my dream of 4-bedroom apartment on the beach, the red Ferrari, big plasma TV in an office overlooking the surf beach 12 floors below etc.
On that particular Sunday morning in April’92, while I was sitting at my computer studying the market, my daughter asked me when we would be rich so that we can enjoy family vacation at Greek Islands.
I looked at her eyes and found a simple question “Daddy, why aren’t we rich?”
I looked back at my past and realized I tried to create wealth for last 10 years but without a real success. My silent answer to my daughter is that I am yet to achieve financial freedom. I’m still trying to come out of rat race even though I survived October’1987 crash on black Monday somehow.
I did introspection and realized that I bought some shares that were going down and then didn’t sell them soon enough. I was in profit but why I didn’t really make the big money from stock market.
I started going through all the transactions to find out what went wrong.
I asked myself why I bought those stocks first. I started to analyze what triggered me to sell the stocks.
After some number crunching, I discovered there was no reason to buy those shares in the first place. I had no reason to hold on to them when they kept going down.
I learnt my first lesson in my investment to ask the question why for every decision.
After some day, I reached my “Aha!” moment and I changed my strategy of stock market investment.
I started by writing out my vision – what I wanted my life to look like when I became a successful trader and investor. Once I visualized end state, I started taking small steps to achieve my dream of earning millions from stock investing and option trading.