Your behaviour tells it all.
How do you feel about being in the markets?
Is money on the line making you jump?
Is it giving you sleepless nights?
Are you tense?
On a roller-coaster?
…are you comfortable sitting on your long-term position?
One needs to earn this comfort.
It does not come for free.
How does one earn it?
By behaving appropriately.
What is appropriate behaviour?
Buying with margin of safety…
…and maintaining a small entry quantum…
…such that one is always liquid…
…and ready for next entry…
…waiting for price to give an inch.
That’s one example of appropriate behaviour.
Also, that’s my example.
How do I know it’s appropriate?
Not on a roller-coaster.
There’s no emotion here, it’s business.
I’m sitting on the long-term stuff, and I’m happy going about all other activities in and facets of life.
That’s why I know that my behaviour has been appropriate, and hopefully, will continue to be so, if I want to continue being comfortable.
Let it go down to zero.
If the stocks that one’s picking have sound fundmentals, price falls are actually a blessing, because one can pick up more.
Small entry quantum, remember?
We can go on buying, on and on. Many, many small entries. That’s the strategy. Our stocks are fundamentally sound, and peoples’ perception about their pricing is not going to change that.
We’re not betting the farm, and money going in is not going to make us feel constrained. We’ve sorted family funds and emergency money. We are going in to the markets in a stable and comfortable condition already.
And, the way we are going in is going to maintain this comfort and stability.