By Robert S. Bacarella| October 27, 2021
The classic movie “Ghostbusters” can teach us some valuable investment lessons. The movie is about locating, capturing and entrapping various types of ghosts that were terrorizing New York City. The Ghostbusters were successful because they had the tools, followed basic rules and were flexible enough to adjust to unexpected paranormal activity or ghost.
These same basic concepts can be applied to a successful investments strategy as summarized below:
First, Develop the Tools
The Ghostbusters used a ghost meter and goggles to locate and see a ghost. Also, they carried a proton pack that produced an ion stream to lasso the ghost and pull it into a containment trap. Similarly, to capture good investment ideas you must start with a screen to identify prospective buys, use technical charts to lasso a trend and finally corral it into your portfolio as a solid long-term holding.
Second, Establish Rules and Guidelines
The Ghostbusters’ rules included always keeping the proton packs fully charged and never “Crossing the Streams,” which could destroy everything. The investment lesson here is to stick to a basic investment approach, follow a strict sell discipline rule to minimize loses and never “cross the streams” by thinking you can successfully time the market.
Lastly, Expect the Unexpected
The Ghostbusters faced numerous challenges, including the iconic ghost “Slimer” and three destructors named Zuul, Gozer and the harmless Stay-Puff Marshmallow Man. Each destroyer had different challenges, some more destructive than others, resulting in numerous unexpected events to deal with.
The financial markets are also filled with unexpected events that can terrorize investors. It is impossible to predict when a market correction or a destroyer will emerge, but you can prepare for it. Investors should always expect the unexpected and have a plan as to how to react to it.
Putting on your Proton Pack
Putting it all together, follow the Ghostbusters’ example as you go about investing by having the right tools, following a set of rules, staying the course, being prepared for unexpected events and never crossing the streams by attempting to time the market.
And as you do, it wouldn’t hurt to adapt the classic “Ghostbusters” theme song to help you with your investment plan!
If you want to invest
In a diversified fund
Who you gonna call?
MONETTA!!
Don’t be afraid to invest!
Don’t be afraid to invest!
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