First, you need some decent tackle, flies, etc. for various types of conditions. Secondly, you need to know what type of conditions you will encounter. Is the weather conducive to catching fish? Is the river or stream flooded? Is it storming? Does the place have any fish? Where are you fishing? Is it a pond, lake, stream, coastline, open water? What time of year is it? How windy is it? What type of fish are you looking for? What size? After you’ve got all that figured out and you’re ready to go, you start looking for fish. Sometimes you find them with your eyes. Sometimes you find them by casting into likely looking places. It takes effort, a lot of time, and many, many false casts. Often you come home empty-handed; but every once in a while you hook into a big fish and that’s all you really need. Now, you have to play it properly. Some fish are like logs; pretty easy to bring to the net. Others are volatile and they try with all their might to throw the hook. Those are the most difficult to play, but also the most valuable. They’ll use the current to fight against you. They’ll swim under brush piles to break your line. They’ll jump and twist and somersault through the air. Eventually though, if you’ve played them right, you’ll bring them to the net. It’s a very satisfying feeling.
Fishing for stocks is very similar; although, instead of having one fish and one pole, you’ve got a few fish on a few poles. That makes things more interesting. You’re not going to catch them all, but if you have the conditions right, and if you have spotted the fish you want, and if you are patient and persevering, and if you don’t mind making a lot of casts, and if you have some basic rules on how to “play them out”, then overall you should do alright.
The important and mostly overlooked aspect of fishing and investing is this: you need to enjoy the process. Fly-fishermen don’t fish just to catch fish. They go fishing for many reasons: to see the fog lifting on an early morning stream, to hear the earth wake up, to feel the cool water as it flows over waders, to spot a blue heron doing a little fishing of his own, to admire the clarity of a beautiful stream, to enjoy the challenge of doing something most will never do. It’s the same with investing; you can’t just go into the stock market with the goal of getting rich. That’s crude. It takes too long and the sheer difficulties you’ll encounter will overwhelm you eventually. You have to have a deeper purpose. You have to enjoy the investing process itself. You have to see the intricacy of the market and your relation to it. You have to marvel at how the market works. You have to be thankful for the opportunity to participate in it. You have to love the challenge.
If you go fishing simply to catch fish, then you will never understand what it means to be a true fisherman. In the same way, if you invest only to make money, then you will never truly understand the market or what it means to be an investor.
Source:http://solitarytrader.blogspot.co.uk