Self Doubt

Very few of us can beat the index. Yet much of us spend a lot of time analyzing companies, looking at stock charts and reading news, in an effort to move closer to our goals.

Once, a dear friend asked me, “What is your investment target?” I don’t have much positive traits but I think my honesty outweighs my humility, and I replied that I simply have no idea.

I do not have a quantifiable target, nor do I have a relative target. What that means is that I do not have a numerical target for returns (i.e. “I want 15% returns this year!”), nor am I seeking a >2% return better than the index.

I am only 10 months into this game and I am too early to set a target.  Even legendary investors have years, at times consecutively, have lost to the index, or even worse, lost money.

So why am I,

… son of labourers with no experience in investing,

… not financially trained (I had a diploma in a computing field, and a degree in liberal arts),

… not in the finance industry

... a lowly paid IT-support staff in a local university, with no insider knowledge in the finance or financial education industry,

… having no dealings with people of finance or high social standing

…doing in the stock market?

There are numerous times that I questioned my investing abilities.

“What if I am wrong?”

There are times earlier that I do capitulate and suffer from “break-even-itis” (selling at break even prices and proceed to watch the stock soar).

My friends had berated me for being negative. Will I able to get a grip during a bear market?

Investing is a testy proposition. The stock market can taunt you, rock your confidence, and sour your moods. 

You can feel like the loneliest person around.   

Your friends will question your intelligence. 

You go home to your loved ones and wondered if you can ever repay the faith or effort they have invest in you.

I can only have faith.