The biggest threat for the investor is the investor himself!
Discipline is key
Investing is actually not that hard, you put money into assets, like stock, bonds, real estate, crypto, etcetera… Preferably on a regular basis.
These investments will create an extra income for the investor, but at some points in time they will drop in value. That’s inevitable with markets that react emotionally sometimes! And there lies the key for the investor. Does he react to that, or not! And if he reacts, hos does he react!
It takes discipline to stick with your plan, even though on some point in time you lodt quite a bit of money, because of a tanking of the market. Some people, actually a lot of people sell in a form of panic and take a big loss with it!
The smart investor is mostly the lazy one, he does nothing and keeps on putting money in his assets.
That discipline really pays off, in the long run! The sort run is just noise, and that’s something people really need to put that into their mind!
Be a great investor, be lazy!
Sincerely,
Pele23
You are absolutely right the way we put money into the line market and after some time if our money depreciates. The way we are now seeing that the crypto market is going up again and those who bought high enough will also be able to make profits.
Forget stock, bonds, real estate, crypto, etcetera...
go 100% XEN NOW and become Billionaire within years!!
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That is some solid advice.
Emotions can and have ruined good things.
Yes planning is important, otherwise you will get panic and sell at a wrong time.
Dollar cost average is the best way to go. I have learn that way of nvesting and it prevents me to get caught into hype or panic :-) (as long as I control myself to respect the amount that was planned to be spent)
True, sometimes it is tempting to invest more than planned! I know the feeling