As an investor, you’ll have experienced a fear of losing money and/or a fear of missing out on potential gains.
If you came across a large sum of money and were looking to invest it, the chances are that you’ll actually experience a mixture of these.Should I invest now? Should I invest another time? Should I invest more than I can afford? Should I invest as little as possible?These are the types of questions that may be influenced by these fears.Fear of loss is the fear of losing money in your investment.
- This type of fear may affect your decision making when you are preparing to invest a lump sum of cash, but have noticed the markets drop by 5% forcing you to stall your investment to another date or not invest at all.
Fear of missing out is the fear of not investing enough or at the right exact moment to get the highest return possible. This fear can turn into greed.
- This fear can influence one to invest more than what they can afford into something, leaving them to fall behind in other short-term obligations or needs.
It’s only natural for us as humans to feel these emotions.Over time, you’ll learn to understand that, in the long run, these fears are not as important as they initially seem.One of the best ways to push these emotions to the side and think logically is to have a plan.And the best plan plan that you can have is one that you will stick to for the next 10+ years and can develop good investing habits with.It will dilute the pain caused by these fears by allowing you to know that you are doing what you can, and that in the long run you’ll be better off.Written by Dallas Davison.
