2 Reasons Why You Must Have the Investor’s Mindset

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Stock Market Investment and Trade Strategies - JayceeDeGuzman.com

More than just my technical advice, I understand that my clients also need some kind of morale-boosting advice, especially when they bought a stock based on their own decision but the market decides to be a contrarian.

“Jaycee, have you already experienced buying a stock because you have a bullish assessment but it went down after buying it?”

A lot.

While you’re shocked with my answer, may I tell you a story?

Aside from this financial consulting business (Stock Signals Philippines), I also operate digital marketing company that offers content writing and administrative support services among others.

My clients (not in the stock market) invest hundreds of thousands of dollars in an aged and premium domain name.

Do you know what a domain name is? Let me give you an example: jayceedeguzman.com. That’s a domain name.

Let me give you an example: jayceedeguzman.com. That’s a domain name.

A domain name is different from a website. When you type a domain name on the address bar of your browser and something appears after hitting the Enter key, that means you visited a website. But if nothing appears or only pieces of information about the domain’s registrar appear, that means what you typed was only a domain name and not yet a website.

“Jaycee, did you say your clients spend hundreds of thousands of dollars for that domain name alone?”

Yes.

The most recent domain name that one of my clients purchased cost $60,000.00. That’s more than 2.6 million pesos only for that brand-able domain name.

Mind you, that investment does not include the operational cost to set it up as a website (designing, coding, content writing/marketing, social media marketing, etc) yet.

For the next few developmental months, it will cost my client thousands of dollars more. In the developmental stage, sometimes, mistakes happen and we need to go back to the stage 1 of the developmental process. That’s another expense – unwanted yet expected expense.

“Crazy client”, perhaps you said.

Who would invest nearly 3 million pesos on a domain name?

Answer: INVESTORS. More specifically, investors who have an idea of what they’re doing and where they’re going.

Why am I telling you this story?

Because I do not want you to blindly throw the towel in the ring when your data-driven forecast and the reality do not agree with each other. I have two reasons for you.

Reason # 1:┬áIf your trade or investment decisions went through your meticulous analysis, don’t you want to check first if your buy case is still intact before you give up?

If your stocks have solid fundamentals, a foreseeable projected growth rate, and buy signals from the technical indicators to name a few, why sell out of panic?

Think with me. I buy a stock for my long-term portfolio not because I’m in love with its current price but because of its future price (a handsome upside % from its current price to my projected growth rate).

Just as how you might think how crazy my client was for investing nearly 3 million pesos for a domain name, I’m equally crazy and happy when I see my stocks go down from the share price when I originally bought them for as long as my buy case is intact. That means my projected earnings will increase.

Reason # 2: I urge you to always wear the investor’s mindset. An impatient person only has two options: change your attitude or don’t trade or invest in the stock market.

Tough words? I’m sorry but that’s how a highly volatile investment vehicle like the stock market works. In the Stock Signals Philippines, I encourage my clients not to take risks blindly. We invest with calculated risks.

Have a relaxed and confident investor mentality!

Jaycee De Guzman

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