65 Things I Learned About Investing in 2020

2020 turned out to be the highest, lowest, and highest against moments of my trading career to date. The most fascinating aspect about 2020, at least for me, was how far ahead of the Covid trade I was. I had first caught wind of Covid while scouring some underground corners of the social web. It was at that point that I placed a trade. The trade I placed was a direct winner in a Covid environment. However, I was so early, I mean literally so early, that the trade was painful.

I was so right, I was wrong.

So I waited. And waited some more. And waited again.

Since 2016, my annual reflections on investments have not only charted my journey but also highlighted the importance of being prepared for the unknown. This practice has been a guiding light through the storm, especially during the pandemic’s market upheavals, demonstrating the strength that lies in anticipation and adaptability. As the wise Louis Pasteur once said, “Fortune favors the prepared mind.”

1. Early Detection: Recognizing the COVID-19 threat early was crucial for timely investment adjustments.
2. Social Media’s Power: Platforms like Twitter and LinkedIn became essential tools for real-time market insights.
3. Build Your Feed: Investing time in curating a quality social media feed pays off in valuable information.
4. Selective Following: Quality over quantity in whom you follow can significantly enhance your investment intelligence.
5. Evolving Sources: Periodically reassess your sources; someone’s insight might improve over time.
6. Timeframe Alignment: Follow experts whose investment horizons match your own to stay relevant.
7. Ignore the Hype: Steer clear of influencers who prioritize fame over substance.
8. Finding Gems: My early investment in LAKE demonstrated the value of identifying overlooked opportunities.
9. Market Lags: Even clear investment theses can take time to materialize in the market.
10. Inefficiency Exploitation: Market inefficiencies create lucrative opportunities for informed investors.
11. Live Accountability: Sharing trades publicly builds credibility and resilience.
12. Emotional Rewards: The joy of a successful trade is unparalleled and motivates continued effort.
13. Consistency in Exercise: Maintaining physical health is key, regardless of market conditions.
14. Concentration vs. Diversification: Concentrated positions can drive significant gains, especially when well-researched.
15. Risk Awareness: Understanding your personal and financial capacity for risk is essential.
16. Zig When Others Zag: Contrarian strategies can yield results, especially in volatile markets.
17. Embrace Solitude: Introversion and independent thinking can be strengths in investment decision-making.
18. Remote Work Advantage: Being comfortable with remote work can offer a competitive edge.
19. Sleep Well: Rest is critical for clear thinking and decision-making in investing.
20. Know Your Edge: Identifying and leveraging your unique strengths can set you apart.
21. Adapt or Perish: Flexibility and adaptability are crucial in fast-changing markets.
22. Remote Experience: Prior remote work experience provided a seamless transition during lockdowns.
23. Thinking Differently: Embracing a unique approach can lead to unique opportunities.
24. Avoiding Normalcy: Traditional paths often lead to traditional results; seek the unconventional.
25. COVID as a Catalyst: The pandemic accelerated many trends, rewarding those who anticipated changes.
26. Public Record: Having trades documented online encourages transparency and trust.
27. Remarkable Feelings: Celebrating victories, like successful trades, boosts morale and drive.
28. Betting Big: Sometimes, a high conviction bet is worth the risk, especially when the downside is limited.
29. Leverage Insights: Using social media to gain early insights can provide a critical advantage.
30. Filter Noise: Discerning valuable information from noise is a key investor skill.
31. Feedback Loops: Engaging with a knowledgeable community can refine your strategies.
32. Continuous Learning: The investment landscape constantly evolves, necessitating ongoing education.
33. Pattern Recognition: Identifying recurring themes in the market can guide investment decisions.
34. Emotional Resilience: The ability to weather public scrutiny and criticism is vital.
35. Celebratory Rituals: Acknowledging successes, like a post-trade run, can be profoundly satisfying.
36. Risk and Life Stage: Personal circumstances greatly influence risk tolerance and investment strategy.
37. Market Surprises: Always expect the unexpected and be prepared to pivot.
38. Investor Identity: Understanding who you are as an investor helps refine your strategies.
39. Independent Analysis: Trusting your research over the crowd can lead to standout successes.
40. Strategic Patience: Sometimes, the best action is to wait and watch.
41. Adaptive Mindset: Being mentally flexible can turn market upheavals into opportunities.
42. Long-Term Vision: Keeping an eye on the horizon helps navigate short-term volatility.
43. Information Discipline: Regularly audit your information sources for continued relevance.
44. Diverse Perspectives: Exposing yourself to varied viewpoints can enhance decision-making.
45. Market Sentiment: Tuning into the mood of the market can inform entry and exit points.
46. Tech Savviness: Leveraging technology can provide informational and executional edges.
47. Health as Priority: Never let investing stress compromise your well-being.
48. Confidence in Conviction: Trusting your well-researched beliefs can pay off significantly.
49. Economic Indicators: Keeping abreast of broader economic signals can inform market expectations.
50. Community Engagement: Participating in investment communities can broaden your perspective and knowledge.
51. The importance of taking a step back and maintaining perspective during challenging times, such as the COVID-19 pandemic.
52. The value of examining the world beyond the digital realm, as nature remains unaffected by the chaos and turmoil that may seem overwhelming on social media.
53. The potential for personal growth and self-improvement through the exploration of new hobbies and interests.
54. The significance of staying informed about global events and their potential impact on financial markets, politics, and society as a whole.
55. The necessity of being aware of the limitations and biases present in the information we consume, especially when it comes to political news and social media content.
56. The importance of maintaining a sense of humor and not taking oneself too seriously, even during difficult times.
57. The value of being open to learning from others and engaging in respectful discussions, even when opinions differ.
58. The need to be cautious and critical when it comes to trusting the words and actions of hedge fund managers and other influential figures in the financial industry.
59. The significance of staying informed about the latest developments in various fields, such as virology, vaccine development, and the energy sector.
60. The importance of understanding the potential impact of government policies and decisions on the economy and society.
61. The necessity of being adaptable and open to change, as the world and its markets can be unpredictable and volatile.
62. The value of recognizing and appreciating the resilience of the human spirit in the face of adversity.
63. The significance of staying true to one’s values and principles, even when faced with challenges and opposition.
64. The importance of maintaining a healthy balance between staying informed and being overwhelmed by the constant stream of information and news.
65. The necessity of being mindful of the potential consequences of one’s actions and words, as they can have a lasting impact on others and the world at large.

In 2020, the investment world was a whirlwind of change and opportunity. These 50 insights encapsulate a year of growth, challenge, and the continuous journey of learning and adaptation in the dynamic world of investing.