28.01.2024

SHORT STORIES FOR INVESTORS: THE CLOCK

SHORT STORIES FOR INVESTORS: THE CLOCK

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Using the principle of the 3 D’s (Discipline, Diversification, Dollar Cost Averaging) any financial goal can be achieved.

Every Financial principle that is taught can be accompanied by a story. Stories reinforce knowledge and are arguably one of the best methods for sharing information.

The story of the Clock (market cycle) reinforces the need for discipline.

We do not have the good times we deserve when we sit on broken stools or use broken clocks.

The clock tells us the tale of emotional investing versus discipline, dollar-cost averaging. The clock (the market cycle) story reminds us of how the market and our emotions work when it comes to investing. Imagine a clock. 12 is an economic boom, 3 is a slow-down, 6 is the R word (recession) and 9 is recovery or improvement.

Strategy helps reduce or limit a common trend; most people when left to their own buy at 11 and sell at 4. Thats anti-investing, buying high and selling low.

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