☕ Why mindset is everything if you want to win – and I hope you do!

Howdy!

US markets are closed today as a National Day of Mourning for former President Jimmy Carter.

I say we use the breather to do a little reflecting.

Stepping away gives you the mental space you need to be a more consistent, more effective and more profitable investor because you can remove yourself from the noise and the emotions that inevitably surface when the opening bell rings.

Even just a few hours works wonders.

I often return with a sharper focus and renewed energy.

Mindset is everything.

Here’s a few things to think about that have worked for me over the past 45 years in global markets.

And, I hope, will work for you.

1. Having a thick skin is vital when navigating volatile markets or investing in bold ideas

A few years ago, I made the remark that AI wouldn’t just be “a” technology but very likely the greatest single investing opportunity in recorded human history.

People laughed openly in my face and scores of intrepid Interneteers hiding behind anonymous handles had a field day at my expense in social media.

Now, not so much.

My narrative has become commonplace.

My portfolio is considerably better off for having identified companies like Palantir early on and sticking true to my analysis, conviction and strategy.

Btw and on a related note, here’s a fun conversation from earlier this week with the brilliant Kelly Evans that relates quite well. Think 7,000. You’ll see why 😀 (Watch)

2. A long term framework will get you through short-term market madness

Equally important is keeping a long-term vision.

Most people pay lip service to the concept but that’s a huge mistake considering that many aspiring market mavericks have the attention span of a gnat.

The world’s best investors, on the other hand, think in long sweeping arcs and they are constantly maneuvering towards their objective.

My big arc remains digitalization… not digitization which is something different.

And honestly, I see that happening for the rest of my lifetime so it’s important I find stocks that will be there when I need ‘em rather than worry about “hot” stocks.

Hopefully you have a similar plan or framework in place. If you don’t or would like to tag along with me and the OBA Family, I’ll be here.

3. Confidence in fundamentals helps when panic sets in

Technicals are great, especially if you are trading short time frames or even swing trading.

Longer term, not so much.

You’ve got to be able to marry the two to see the real story.

Fundamentals help tremendously and I don’t just mean numbers and metrics.

I think it’s far more important to understand the “footnotes” if that makes sense. For example, where’s a company going, why, how and who’s leading the charge?

4. Challenge widely accepted misconceptions if YOU want to make money

Investing isn’t a competition, but lots of people view it that way.

Big mistake.

The thing to do is to understand what YOU want to accomplish by being in the markets. Then buy and sell… no scratch that… CRAFT a portfolio that will lead to success on your terms.

For example, I haven’t owned META for years because I cannot come to terms with El Zucko’s character. But I support and encourage every investor who is on board and for whom Meta is a match.

On the other hand, I have no problems owning a stock like Tesla because I’ve come to terms with Musk’s antics and, more importantly, where I think he and his team are taking things.

5. Innovation is non-negotiable

Apple is a great example.

Many investors are pulling back because they’re worried about iPhone sales, China or heck knows what for a variety of reasons.

My only fear is that I may not own enough shares.

Roughly 1 in 4 people worldwide will access or already accesses some form of big data – shortly to be AI – through the 2.2B+ installed devices already out there.

Team Cook can change a few lines of code and add billions of dollars to the company coffers even if it doesn’t sell another iPhone till the end of time.

Innovation drives exponential growth.

And if that’s what you want for your money, it’s important you come to terms with not only the opportunity that presents but the people who will challenge you because they can’t see it.

What happened yesterday with quantum computing is a perfect example, btw.

Bottom Line

Your job as an investor or trader isn't to figure out where the markets go next.

It's to recognize that they're in motion, then act on the signals created when that happens.

You got this - I promise.

As always, let’s MAKE it a great day!

Keith 😀