Trade or Invest with clear understanding of your own situtaion

Here is the head line from By MarketWatch, Aug. 25, 2011, 1:05 p.m. EDT
Buffett’s BofA investment is the new TARP
Commentary: Private-sector bailouts are better way of injecting capital

Read Full News:
http://www.marketwatch.com/story/buffetts-bofa-investment-is-the-new-tarp-2011-08-25?link=MW_story_investinginsight

I am particularly interested in what the writer said at one point:

The question for investors who don’t get the nearly guaranteed 6% dividend is whether it’s worth following Uncle Warren in. Retail investors who followed Buffett into Goldman and GE aren’t in the money, with the Connecticut industrial giant again the far-worse investment.

That is precisely what we should as ourselves when we make a decision to invest or trade. We are at different position and we are not able to have to cushion that Warren has. Whatever theory he has, we cannot have it. So, eventually, we need a different strategy.

For investors who blindly follow, they will not be getting anything. For the abovementioned case, they may not suffer great losses but, they could have gain a lot more else where.

Investing and trading in stock market involves hard work. There is no easy way out. Listening to others may work but you may ended frustrated when a things don't turn out well. You can only do that if you are prepared to lose all your money. That means the invested money is something excess for you. You will never need those money no matter what happens.