Investing to make money is scary for any one who earns their living through hard work. The stories of stock market collapse and gold prices declining in one day or week are scary and it does affect your sleep. There are some folks who regularly do conference calls at midnight and for those, these huge declines will disturb your “peace” of mind.
So what is the solution for such a problem. I ran into such a scenario when I started investing in stocks. Emotions would go high and make me happy or sad when the share prices went up or down. That was until one fine day I read about Buffett. He was asking people if they would look up the prices of their home or their farmland every day and feel happy if it goes up and feel sad if it goes down. The key thing is would you check the prices every single day. Then it dawned, you won’t do anything like that. Then why would you do the same thing about stocks. Because the prices were available and also that I was hoping to make only 10 or 20% on a stock buy.
Now, after almost a decade of experience in understanding equities, I have started buying only shares of companies that I need not worry about on a day-day basis. So that is the secret behind buying stocks and sleeping well.
