5 steps to invest in STOCK MARKET
A short story:
I started investing on the Romanian stock market in 2005, a year in which I almost doubled my money, without any kind of investment strategy.
We knew all the peculiarities of the listed companies, we knew everything about company management, dividends, charts, financial news. It took me a long time but I liked what I was doing.
The next 2 years, 2006–2007 were again very good but the year 2008 brought me a loss of 70–80% of the total portfolio.
I spent the next 3–4 years trying to make up for the loss, and I ended up in 2011–2012 when the sovereign debt crisis (when Greece was close to bankruptcy) brought me losses again.
2013–2014 were years in which I spent much less on the stock market and with much smaller amounts because I felt that I did not understand anything of this whole phenomenon. I felt that I was consuming a lot of time and resources and the results were far below expectations.
The results were much worse than if I had invested an initial amount in 2005 and stayed on the bar all this time. No stress, no wasted time but with much higher gains.
It wasn’t until 2014–2015 that I started investing passively, systematically, without adrenaline and dopamine to darken my judgment, just like a professional.
And the results were much better, managing to get a consistent over 10% annual return on the total portfolio, without allocating more than 30% of the portfolio on shares.