Knowing what to focus on in every market context is important. Investors are prone to focusing on the wrong things and missing out on what they really need to focus on. Investors are so obsessed with a few things that they ignore what is more important to their Investing. This is the most critical aspect of all failed investing. Investors rarely fail because they don’t know what is the right thing to do. Investors almost always fail only because they knowingly failed to do what they needed to do. Success can make investors very blindsided by their responsibilities. And, super success can make investors become totally carried away.
The market seems to be heading into such a phase. The onus is on an investor to focus on their behavior as risks head into a very tough zone. Only then will he look out for actions he needs to take? Acting in a timely manner becomes supremely critical in a bull market. And when things go out of control, seeking safety is not an option. An investor must be fully prepared to act rightly at that moment when it presents itself before him.
Now, it is time to prepare oneself and stay in a state of readiness to act when the time is right. Without adequate preparation, one will not be mentally conditioned well enough to act when he needs to. As markets get more irrational, investors will struggle to retain their composure and sanity. But, they need to work on their own psyche to act right when they must, and not simply sit tight. This is the time to get into that state of readiness.