Categorized | Domaining Tips

Embrace Love… But Not When Investing!

Posted on 15 February 2019 by Andrei

Posting this seems appropriate, with it being the day after Valentine’s Day and all that 🙂

I’m more than serious when saying people need to embrace love. Love the person you choose to spend your life with, love your children, love your family members, love your friends.

Even when it comes to work-related stuff, there’s ample room for love. Love your career, love your new business idea, love the hustle.

Love, love, love…… and I’m sure you realize now’s the time to use the B-word.

BUT

Because yes, there’s a “but” even when it comes to something as ubiquitous as love. If people ask me to name just one aspect of life where there’s absolutely no place for love, I’ll answer that question without even blinking:

INVESTING!

Time and time again, investors make this one fatal mistake: they fall in love with the asset or asset class they’re investing in. From precious metals investors who think gold is the answer to everything to crypto investors who think crypto will revolutionize revolutions or real estate investors who firmly believe real estate can only go up.

What’s the problem with that, you might ask?

Well, falling in love with an asset messes up your timing game big time. After all, how often do those who love an asset sell? Pretty much always too late or in many cases, not at all. They become perma-bulls and that’s just plain wrong.

If you want to become a good investor, you sell when you have valid reasons to sell and buy when it makes sense to buy. You don’t have to be a fortune teller, you can definitely be an amazing investor even in the absence of impeccable timing as long as you’re professional about it.

Put together a plan, execute even when your emotions dictate otherwise.

After observing the effects of your actions, tweak your plan accordingly. Keep the elements that work and drop those that don’t.

Rinse and repeat.

The scientific method at its finest. /shameless plug

Don’t strive for perfection, that will never happen. Instead, becoming more professional should be your main goal. The scientific method might not be perfect but we don’t exactly have anything better at this point, so it’s your best choice in my opinion.

Yes, I understand that though this post, I’m basically telling humans to be… well, less human when investing. I realize how difficult it is, counter-evolutionary even in some respects. There’s a reason why only a small percentage of those who invest become genuinely good at it and it’s not because they have a working crystal ball!

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