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Stick to your plan from "summary" of The Little Book of Common Sense Investing by John C. Bogle
The most important thing an investor can do is to create a plan and stick to it. This means setting clear goals and objectives, determining an appropriate asset allocation, and establishing a disciplined investment strategy. Once this plan is in place, it is crucial to resist the temptation to deviate from it in response to market fluctuations, media hype, or the latest hot stock tip. Investors who try to time the market or chase after performance are likely to underperform in the long run. Studies have shown that the average investor tends to buy high and sell low, succumbing to fear and greed in the face of market volatility. By sticking to a well-thought-out plan, investors can avoid making emotional decisions that can sabotage their long-term financial goals. Another key aspect of sticking to your plan is maintaining a long-term perspective. The stock market is inherently unpredictable, and short-term fluctuations are a normal part of investing. While it can be tempting to react to every twist and turn in the market, successful investors understand that patience and discipline are essential virtues. In addition, sticking to your plan means ignoring the noise and distractions that can derail your investment strategy. The financial media is filled with pundits and experts offering their opinions on where the market is headed next. However, trying to time the market based on these predictions is a losing game. Instead, focus on the fundamentals of investing – diversification, low costs, and discipline.- Sticking to your plan requires a commitment to staying the course, even when it feels uncomfortable or goes against the prevailing wisdom. Remember that investing is a long-term endeavor, and success is measured not by short-term gains or losses, but by the achievement of your financial goals over time. By staying true to your plan, you can increase your chances of building wealth and achieving financial security in the years ahead.
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