The difficulties of investing? Really?

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Read? The difficulties of investing

The difficulties of investing? Really?

I think the problem may lie in the mind of retail investors. They like to think that they are buying into companies or businesses when in fact they are NOT. They are just buying stocks. If they can change their mindset to think that they are actually buying stocks; then they don't need few years to realize that they are wrong and wasted their most precious commodity of all - their time.

After you have brought the stocks and their stock prices don't move forward in your favour. It is quite obvious that you are not so right; and probably the only mitigation or feel good factor is when you receive good dividends. If you have bought the stocks right; you should be receiving good dividends and also seeing some unrealized capital appreciation in one year time.

When you realize you are wrong; you should be evaluating your opportunity cost for holding on to such stocks and to decide the next course of actions to improve your year-end portfolio performance.

Another bigger problem is that some retail investors don't take their portfolio performance measurement and tracking seriously with the view to improve their investing skills or to review their investing strategies in ever changing stock market environment.

Investing may not be that difficult.  It can be made simple by doing less analyzing and more investing; but that it will require you to track your portfolio closely and seriously and to keep learning. You have to continuously reviewing and revising your investing strategies to make them relevant in the ever-changing and self-learning stock market. You may make good money in 2009/2010; but now you may be struggling in 2011 to make money as the stock market has changed its form.