In our financial life it is important to have objective. This week just gone I experienced some customers of mine who had an objective but didn’t follow it. Not following you objective may cause regret, but it can also cost you money.

My own investment objective has always been long term and I have so far been good at picking stocks and other investment product that long term have been good. When I say long term, then I mean that there has been time during my ownership where had I stopped my investment I would have lost a fair bit of money.

Back to my experience this week, what happened was that my customers got blinded by other factors and forgot their main reason they came to see me. This blindness will be the reason for making irrational decision. I myself was about to make a similar decision a few weeks ago, when I was about to sell some shares of mine due to underperformance, I got blinded by the short-term performance and forgot the reason I bought them in the first place.

This leads me to the next thing. To have objectives we need to have done some homework/research, without this we will be thrown around at the mercy of others, and just because someone thinks something is a good idea, doesn’t mean it is a good idea for you.

To finish this of it is good to have financial objective for the short, medium and long term. If we have this then we know what to do if a stock does not perform as planned.