In the stock market, patience usually wins. In the same way, impatience usually loses (although in the momentum phase of the market, it appears that only the impatient win - bu not for long).
Thanks to 24 hour TV, our ability to wait has been reduced. While the patient investor could look forward to handsome gains over a few years, that time frame hs changed so much that gains are expected immediately. We cannot wait for time to do its own thing. We want results. Now!
As an example, reading habits have changed because of the cable TV & internet. People have bcome impatient readers. They have become used to channel surfing or sufring the web, quickly moving from one page/channel to another. people send SMS instead of calling or sending emails.
As a trader, impatience and the need for instant results cause us to make poor quality trades. There is a stock, for example, we can take Hindalco. You have heard experts (who else but me!) say on TV today that Hindalco is a buy.
You check up your charts and find the share is up almost four percent today. Now what? You tell yourself that the stock will run away so you must enter it quickly. Tomorrow, suppose the share opens one percent lower. You buy quickly since you know this is going up big time.
Much to your horror, the share price keeps on falling, finally ends up 11% lower over a period of three weeks. At that point, you curse the expert, sell off the shares and begin paying attention to the other experts. Now, the share (Hindalco) stops falling, slowly starts rising, then over a period of three months, makes new highs.
Suppose you had the patience to tell yourself: I will buy, but only on a correction. If I do not get a correction, then I will not buy. Would the outcome be different? Your views are welcome.