The ultimate goal in trading or investment

It is often mentioned that a trading or investment journey is a marathon rather than a 100-meter sprint. This is easier to say than done. Most people will either lose money in it, casually invest break-even or slightly make some money or they make big money once awhile like during covid-19 and exit the market with all the cash they earn from the market.

The challenge here is how can you generate profit consistently from the market over the years. It is a very big challenge because of market conditions change. For example, Kodak was once a very profitable business but now end up in a sunset business as everyone going into a digital photo.

Sound similar to most of our trading strategies were some of the strategies work well on certain market conditions but it slowly fades off?

Many traders tend to change strategy too quickly when the strategy suffering losses. Hence so many traders only win on a certain period and subsequently, they no longer trading the market. For example, some articles actually mentioned Warren Buffet’s value investing no longer applicable and his performance is underperforming the S&P500 but who knows 5 years later his fund will outperform so much that this is just a temporary “drawdown”.

To avoid changing strategy too soon trader should have a strategic guideline so you can evaluate your strategy properly.

As a result the ultimate goal it’s always to maintain its profit consistently over the different market condition. We shouldn’t be too excited over our winning traders and keep bragging about it or too disappointed over the losses.