Have you lost money investing? Read this

Investing is like batting in baseball. Just because you’re wrong with one pitch doesn’t mean you can’t hit a home run later.

Last week, I wrote about how I made a mistake rushing to invest in Fastly. No, I haven’t changed my mind about that. But I do think that’s part of this game called investing, or betting.

You see, you have to be ok with losing in order to win here. Investing in stocks isn’t like taking a test or going to school. You won’t get 100%. That’s the wrong paradigm. It’s different than that.

It’s more like playing baseball.

In that game, batters approach home plate and get into the batters box and they get ready to face off with the pitcher. And the fact is, when they do, they will lose. They will lose more than they win. Even the best batters hit 30% of the time. Babe Ruth did a little better than that. Great hitters have more losses than wins. That’s the nature of batting in baseball.

And when a batter is losing more than winning they have to constantly reframe their minds in order to actually get hits when they’re at bat. They can’t let the last strike or foul ball or strike out or missed swing faze them. They must clear their mind enough to focus on the present count, pitch—moment. And they know that this is new and what matters most. What happened before can’t be changed. What will happen can’t be predicted. The best thing a batter can do is sit and practice presence. Because, right now is all that matters.

If you’re an investor, you’re like that batter.

You will have losses. You will make mistakes. You will get flustered. You will fail. But the sooner you are able to calm yourself, release the loss, the past, the future and engage fully in the present, the better you will be able to do in this game of investing.

Right now, I’ve decided to sit in my bets and be patient. I’m waiting for the right pitch.

I’ve had a loss. But all isn’t lost. And, over time, I think I’ll hit a grand slam, maybe two.

I believe you will, too.

Happy betting,
John


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