Most people think investing is a fast-paced, action-packed, stress inducing activity.

Watch any investing movie, and they make investing look like a contact sport. In movies, you see people so stressed out from their job their lives are being ruined. They are constantly busy, in fast-paced environments, and surrounded by chaos. This is because this is what people find entertaining.

But just as professionals in many areas would say "reality isn't what it's like in the movies."

I think many people believe that investing has to be this way.

But it doesn't have to

Investing should make you bored to tears.

Mohnish Pabrai says a good investor should be more than happy to watch paint dry.

Why?

Because this is mainly what you'll be doing as you allow your investments to compound for you over many years. All wonderful companies go through ups and downs. The people who profit most, are the ones who can patiently hold as the company continues to improve its fundamentals.

So if investing should be boring, what actions do we do in the meantime?

Practice patience, equanimity, and rationality

You have to understand that inactions is most often the right move for successful investing.

So forget the movies, pick up a book instead. Read how Warren Buffet, Charlie Munger, John Maynard Keynes, Philip Fisher, or Bill Miller made their money. Figure out the traits that these investors had in common, and try to absorb them into your own life.

For starters, they all read a lot, studied history, and always sought to improve their understanding of the world. Here is what else can help you avoid too much action:

Tip #1: Build Patience. Wealth is built over decades, not days. The faster you understand this, the better your decision making will be. You'll also be less willing to take on risk.

Tip #2: Accept the market with equanimity. Markets go up and down. So accept it and focus on the long-term.

Tip #3: Stay rational. Don't allow emotions to cloud your rational mind. We are the easiest people to fool, don't allow your emotions to fool you into making boneheaded moves.

Remember, in investing, action should only be taken at opportune times (which are rare).

Instead, follow Warren Buffet's advice: “Inactivity strikes us as intelligent behaviour.”