It isn’t very difficult to start investing these days, with PhyGital (physical + digital), on-ground, and digital options for you to choose from. However, putting money in a chosen product is only part of your investing journey.
Adopting the proper investor’s mindset will help you enjoy and learn from the journey as you try to reach your money goal through investing. While this isn’t a sure-fire solution, it may greatly decrease your worries and frustrations while guiding you to making the right financial decisions.
Interested in finding out what goes into a proper investor’s mindset? These are the common characteristics that you might want to have.
Patience:
While there are true success stories of quick and huge investing gains, these are very few and far between. The reality is that in most cases, you’ll need to give your investment ample time to grow.
This makes patience one of the most prominent characteristics of the investor’s mindset. You’ll need to be OK with keeping your money in and not getting frustrated in the times when it seems to be increasing slowly.
It also takes patience to keep following your investing strategy even if the returns may not seem to be that big. Over time, though, you might see that the growth has been steady and ultimately large enough to achieve your money goal.
Risk-on Sentiment:
At some level, risk will always be present when you invest. So, your money might not grow at the rate you expect it to, or even at all. At worst, you might even lose money.
This is something that you must accept if you want to have the proper investor’s mindset. It isn’t bad if you aren’t comfortable with any risk but it means you shouldn’t be investing until your attitude towards risk changes.
Of course, this doesn’t mean you need to invest while thinking that you won’t be making money. Staying positive while being conscious of the realities can go a long way in helping you go the distance and possibly have a successful investing experience.
You also shouldn’t throw caution to the wind and go with products whose risk suitability makes you uncomfortable. Instead, answer the risk assessment as honestly as you can for an accurate risk profile that can guide your investment choices.
Reason:
Investing is often an emotional journey as well as a financial one. You’ll be excited when you start, nervous when you check your portfolio, sad if the performance isn’t as good as you expected, and happy if the growth is as anticipated or even more.
Feeling all these things is normal and perfectly fine, but in the proper investor’s mindset, you’ll need to put all of them aside when you make decisions concerning your portfolio.
Using reason instead of emotion allows you to base your choices on facts and analysis, which have a higher of being correct as compared to emotions and pure instinct.
When you combine patience, risk acceptance, and reason, you’ll have a mentality that can take you far when investing. Add knowledge and experience to the mix, and you’ll be well equipped for your investing journey.
