For those of you who have often made investments, and arguably have a variety of instruments, certainly have experienced this. Actually, investing is a game, you know. This can make you decide something wrong, when you let emotions participate or in English is called emotional investing. Therefore, we need to have rules or a system to avoid this. Try to read the following suggestions from Capitalist Exploits Homepage then adjust and adapt to your philosophy of investing.
Set Long-Term Financial Goals
The first way to avoid emotional investing, before starting to decide something when investing, you need to take time to rethink your long-term goals. Take it easy, you can still have short-term investment instruments and still have long-term goals simultaneously. Then, what can you do?
Think about why you are investing
If your goal is to invest because you want to raise funds for retirement, of course it’s different from those who have investment goals for marriage. So, first determine your goals so you can move in the right way.
Consider Age and Determine Time Horizon
In the world of investment, there is what is called Insider Landing Page which is defined as planning the investment period up to the time when the results of the investment are taken. By considering your age and determining your time horizon, the analysis and decisions you make will be more appropriate. Are you currently entering into a mature phase of life? If so, your time horizon in investing is definitely less, and you can focus more on stabilizing your investment portfolio, preparing to retire. However, if you have just entered the workforce or are pursuing a career, you can choose investments that have a longer-term, with a higher risk to get greater returns.
When you already know what your goals for investing are, usually you will experience two phases that can determine your attitude in investing. Either you become Overconfidence or Underconfidence in investing. What is that? Let’s look deeper.
An attitude of confidence does need to be had when you make an investment, but you need to be cautious because if it is excessive, it can lead you to make wrong investment decisions. Overconfidence types of investors think that they are smarter and have good information than they really are. They strongly believe in the ability of the analysis, even though in reality it leads to the wrong prediction. Of course this can bring your portfolio to the field of destruction and you may feel very disappointed because the results obtained do not match your expectations.
Conversely, you can also be a person who is too worried or not too confident when investing. Usually this happens when you have had a bad investment experience, or you set expectations for unrealistic results that you have never achieved. For example, you must understand that no one knows anything about investing or a company in depth. When doing analysis, realize that you will never know anything about a company, funding or industry. Sometimes, you have to make decisions based on the best information you have got. If you worry too much or don’t have too much confidence, this will make you think too much so that you could lose a significant investment opportunity.