Had this weird thought the other day while thinking about traffic: investing is basically like trying to navigate a massive land transport system.
Source: https://pixabay.com/photos/railroad-train-rails-soft-traffic-4262017/
You know how when you're planning a long trip, say from London to Hong Kong via land route, you've got all these different routes to pick from? Some are super fast but expensive like bullet train, others take forever but you get to see the sights along the way. Investing feels like that to me.
Once you hop on that train or bus you pick, you're pretty much stuck for the ride, right? Same deal with investments. Sure, you can technically jump off (sell), but that's usually not the smartest move. Whether you're zooming through on the bullet train or chugging along on the scenic route, you're committed to that journey. Because you paid the ticket price.
Who hadn't have the experience of panic-selling during a dip? Rookie mistake like this like getting off the train in the middle of nowhere because the ride is getting bumpy and uncomfortable. Usually better to just ride it out, which we do with the real travel. But indeed, sometimes we also need to make quick decisions and abandon the trip, like when you hear some bad news of flood awaiting ahead!
So its a real mix of good planning and being responsive aptly, just like in investing.
Indeed, most of the time, we have the real power at the station, when we're deciding which train to board. Hopefully we get a train with least need to get off while making the most buck for our journey.
Sometimes you luck out and catch that perfect route that gets you there in half the time (buying BITCOIN when it started). Other times, you end up on the local train that stops at every single station (like Hive! LOL). But we should have a plan while on the journey.
Look, at the end of the day, investing is really about strategizing, planning as much as possible and executing the plan.
Enjoy the ride!
