You Can’t Cram for a Harvest

If you ask any farmer about sowing and reaping a crop they’ll likely say that “You can’t cram for a Harvest.”

There is an established process involved and if you try to shortcut it you’ll fail miserably.

Let’s take corn for an example.  Farmers know that once you’ve planted your seeds, the process you’ll see is:  “first the blade, then the ear, after that the full corn in the ear.”

The simplicity of this process is profound and has been around since the beginning of time.

This same process works for investing.

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• The farmer prepares the ground. (researching companies to buy)

• He plants the seeds. (Putting your money to work)

• The farmer knows there will be good and bad weather. (Similar to market disruptions)

• During the growth period, the farmer doesn’t dig up the seeds to see if they’re growing. (Don’t worry about your stocks if you’ve given them the proper attention before investing in them)

• In due time the farmer reaps the harvest. (Instead of trying to get rich quick, follow your plan and have patience)

Part of your plan should include price points where you:

• Take profits

• Add to your current positions

• Cut your losses and move on

These are basic principles that are easily applied and effective when you discipline yourself to take your emotions out of the process.  It’s easier said than done but you can do it.

Remember, investing with a fear and greed mindset is like cramming for a harvest.  It doesn’t work.

Just ask a farmer.

And be sure to see one of the easiest ways to reap a harvest in the stock market in our August Newsletter.