I talk to and converse online with so many good folk that are invested in the stock market and who do so WITHOUT an investment plan and method.
Those without an investment plan and method are always going to be on the hunt for the best stock, the best this or that, the best market timing and it is evident by the indecision they display and the ceaseless talking and surmising all over the 'interwebs'. Blown about by every wind of financial doctrine. Noise.
Having a sound investment plan and sticking to it through thick and thin is MOST of the battle won. Conversely, fiddling with our portfolios (if indeed they are portfolios - often they're just a mish-mash of holdings representing our thinking at the time of purchase) is a sure-fire way to lose money unless we are just dumb lucky. Some of my worst investing mistakes where from fiddling, tinkering or changing investment plan and method ..... or those times I have decided to have a little bit of 'fun' with a stock holding or two.
My Simplified Investment Plan and Method
My investment plan is this: To own a portfolio of LIC's (Licensed Investment Companies stocks) both inside and outside of superannuation which will grow to produce a gross dividend income of $60K per annum.
My investment measurements:
1. Amount of stocks owned
2. Annual dividends received
Simple. Elegant. Respectful of my future self.
What's your plan?