This path of investing is most straight forward and simple. Simply work out a long term plan of investing that is right for you and then be committed to it. When your friends or your broker tells you about a great investment opportunity and they say that it is great time to buy it, dont buy. When the media reports big investment opportunities , beware of such news. When your neighbours tell you how the stock markets have maade them rich in the last couple of months, dont be tempted.
When Analysts on Tv say that the Market is going to crash and the stock prices are going to fall, don't sell. When News papers report a bear phase and tell you to liquidate your portfolio dont do that. When your broker tells you to sell as he foresees bad times ahead, do not listen to his advice and sell. Emotional discipline is the most difficult. It is not easy to control your emotions and go against the herd. But you need to believe in yourself and your investment policy to which you are committed. This path like the intellectual path pays stress on the virtue of patience and long term patience. Patience focusses on investor's attention on the goal of Compounding over a long period of time. It is astonishing how money would be compounded even at a modest rate of interest. For Ex. If one were to compound money at a modest rate of 7% it would become double at the end of 10 years and 16 times at the end of 40 years.
