Freeus,
You are our wandering, lost soul who can be found, but you've got to use the mirror to find her. :)
This is THE most important thing I've ever written to you. Throw this in the trash can or take it to heart, but for me it's the most important exchange we've had. I'll apologize in advance if this post appears blunt, but I'll risk being blunt with the hope that being so enhances the clarity and sense of focus you and others in your situation (there are many like you!) need.
I guess I don't have any direction in my mind or heart either. And most of all, I'm afraid. Not a good combination.
That's natural. Lacking the direction in your mind, your emotions wander too. That combination will always breed discomfort, not comfort.
Before you can invest successfully, you've simply got to determine a course in your mind. Being firmly fixed on that course, your heart will then enjoy the comfort and relief.
For a brief moment, forget about investing. Instead, focus on the issue that you're lacking direction. It's critically important that you determine your sense of direction with some highly focused goals.
Goal #1: Stop thinking about the date you want to quit work. Instead, determine the criteria that will make you feel comfortable quitting. Write them on a piece of paper or in a text file. Periodically review the criteria.
(When you've achieved your criteria, quit working. Until then, be creative and productive at your job. Add value and a sense of purpose to those who interact with you. And be happy about all of that!)
Goal #2: Determine what appears risky to you and what appears safe. Again, write a list of factors. (Example: Whereas volatility is not a symptom of risk for me, it appears that it probably is for you.) Determine your tolerance for that risk. Your perception of risk may change over time, but base your determination on your current thinking about risk.
Goal #3: Now that you've learned that you (and no one) can reliably predict the short-term future of any stock, STOP TRYING! By avoiding the short-term machinations of the market and a stock, you have a much, much better chance of increasing your net worth to the point that one day you will be able to quit working. Until you come to accept that, you probably will never be able to quit work short of being unusually lucky enough to have a financial windfall separate from investments.
Goal #4: Stop looking over your shoulder at the big fish that got away. (Do ya like that mixed metaphor?! :) We've all lost 'em. In the big scheme of things, they simply don't matter all that much when they are part of a diversified portfolio. I'm so good at having let the big fish get away that I know from personal experience that achieving Goal #4 might be the key to your being able to enjoy having achieved the other three. I also know from personal experience that letting the big fish get away doesn't mean you can't increase your net worth exponentially over time.
Hope this helps. There aren't any details, but until you focus on the big-picture stuff, the details are useless.
And if it helps you to relate to the stuff above, be aware that you and I are the same age.
My very best to you!
--Mike Buckley |
