What’s your approach to investing? How do you think about investing in a way that increases your chances of success multifold? Will this suit you?
An Investor can behave in 4 ways:
Fisherman:A fisherman goes every day to catch fish. He can’t really see them, but he sees some signs of where they might be and casts his nets with the hope to catch some. A Day-trader works this way, but he won’t admit to the luck factor.
Hunter: A hunter goes to the forest every once in a while, looking for signs where he might find an animal he can bring down. Searching in a dense forest for an animal that is always moving and hyper-cautious is never easy. The hunter comes back empty handed or with a small animal very often and only rarely with a big kill. A hunter depends on his luck, knowledge and skill to find the animal and his skill to bring it down. He needs to do this repeatedly and succeed often enough to be successful. Else he has to hunt all his life.
Vegetable Farmer: A vegetable famer puts in a lot of efforts, for a month, two or three, the time required to get vegetables grow enough to harvest. If things go fine, he gets a good harvest and if he is lucky a good price for it. He then repeats this, makes a call on what to grow next that will fetch him a good price. An Investor with short-term perspective of 30/60/90-day horizon or a momentum investor works like this.