Is it the knowledge of finance and accounts? No.
Is it having insider information? No.
Is it getting hold of great opportunities at an early stage? No.
In almost a decade that I have been investing in stocks, I can tell you easily that most demanding part of investing has been to sit tight and let the investments work themselves. You can do all the analysis, have access to closely held information, know insiders very well and still not profit from it. Why? Just because it is almost energy seeping not to act constantly. Sounds ironical, sure it is!
I have been right so many times in the past and yet been wrong. I was able to identify great stocks at an opportune stage when I could easily invest in them, wait for a few years and gain a truckload of money but I drifted. Reasons vary- lure of better investments available, market participants indicating an imminent crash etc. But mostly it has been impatience. However, after being hit so many time by my “over-acting” approach, I have come to realize that I need to look at the performance of my investments maybe every fortnight and not every day. I have stopped to look at price movements every hour of the day. I tell myself that I can not get out of an investment for at least 3 years after making it, so I need to be careful (unless there is a change in my investment story). This way I have slowed down and for better.
Sure there are times when you need to get out of investments early on account of change in fundamentals and other reasons, however, mostly after you have done all the due diligence and are confident about your investment, you have to be disciplined and patient enough so that the investment can fructify. So guys, slow down a bit. Let it work!