Why did I invest so little?

Why did I invest so little?

This question is in my head all the time since yesterday.

Recently I stayed away from the stock market. Mainly because of the bearish market. Most investments are very risky nowadays. I’m also not an investing guru and when I don’t feel comfortable and don’t know what is going on concerning stocks I prefer to stay away and watch the situation from the side.

Watch the situation from the side.

Exactly, staying away from market doesn’t mean I do not learn, observe and look for investing opportunities. All the time I read books, comments, analyses and of course I analyze many charts. I’m passionate about this so it’s not a problem for me. But if you have to force yourself to spend some time with charts, maybe investing is not for you.

Yesterday I found interesting stocks which I bought. Technical situation was quite interesting and additionally, fundamental situation was very attractive. Actually, I can’t say too much about fundamental, as I’m evangelist of technical analysis, but there were good comments about it from my trusted friends, who are more behind this approach. Technically, stocks have just started short-term uptrend. It was very tempting to jump in, and so I did.

Why did I invest so little?

Despite of attractive technical and fundamental signals I’m very cautious. I think that most investments right now are very risky. Therefore I invested only a little money.

No more than hour after I opened position, the stocks soared. Today, it was a replay day and in two days I made almost 12%. Great, but….

Why did I invest so little?

It is very common that after successful picking a stock an investor is asking this question. This feeling that you could invest more and now enjoy much bigger earnings appears and it is difficult to free your mind from it. A simple way to help yourself is to answer the following question:

Why did I invest so little?

• I’m a cautious investor.
• I don’t take unnecessary risk.
• I don’t put all my eggs in one basket.
• Stocks don’t always follow technical and fundamental analysis.
• This time I made a good pick, but it could be also the wrong one.
• I obey my investing rules.

You have to control your emotions. It is very important ability especially for successful investors.
All in all, I made a good investment. I didn’t take unnecessary risk and I followed my investing rules and I earned a nice amount of money.

photo credit: Buster McLeod