Wednesday, September 21, 2011

How Owning Stocks is Like Having a Moody Girlfriend

They both hold the promise of great returns.

Both can take you to great highs and terrible lows.

At times, you can be fooled into thinking they are predictable.

When they are good, they are good; when they are bad, they are very bad.

There are times when you can’t take your eyes off them, so tantalizing are their movements.

They can make your heart race with excitement and at other times with fear and consternation.

In both, you may often find resistance.

Neither may be reliable when it comes to support.

With both, there may be periods of elation, but they are matched by times that will disappoint.

They can both lull you into a false sense of security. 

They can both be foul in the morning, and turn around completely by the end of the day.

Conversely, they can be most agreeable in the early hours, and utterly wrathful in the later ones.

You may try to understand their behavior, and when you think you do, they will act differently!

They may at times offer you a steady climb upwards, and at others a period of prolonged descent.

When their fundamentals are sound, you should try to endure the temporary disappointments, which are inevitable.

Sometimes, you will want to ditch them; sometimes you should.

Both require you to act with discipline.

Both can lead you to drink.

Both can cost you your life savings.