Stocks. Cryptocurrency. Real estate. Business. Art. And other things that generate income. These are examples of assets that can be considered as investments. These are various options that are bought that yield returns may it be from dividends, rent, sell, or profit. Investing in these various instruments could make one wealthy and be set for life if done right, with some luck. Having these assets could spell the difference between living a good life and living in hardship. It is somewhat similar to betting and gambling, but not entirely, that these instruments will give the returns that will change a person’s life.
True. Investing and receiving that return changes everything. Suddenly, the feeling of being wealthy is here. The worrying about getting that salary, supporting the needs of the family, funding a vacation, or even ensuring there is always food on the table, is gone. The earnings gained from that investment are enough to sustain the life striven for after all of the years of hard work, waiting, and hoping. Living a good life is now within grasps.
That is the future. That is what will happen in the future. It is not now. It is not tomorrow, not next week, not next month, not even next year. It will happen. However, there would be no definite time. It would take a while. It would take perseverance to continue. It will require effort to stay the course. It will require an enormous amount of patience and hoping and wishing and praying that it will turn out as what is being aimed for.
But most people quit. Quit early in the game. Loses. Never able to see the fruits of the labor. The question would be the why. Why do people quit and pull out of the game? What makes people lose in investment? What can we do to keep going?
Investment is not overnight
Keep that in mind. Investment is not overnight. It will not make you rich or wealthy tomorrow. It will not give you the return you are hoping for the following day. It is not magic. It is not a miracle. It is not inheritance. It is not lottery winning. It is none of those.
Investment takes time. The returns will happen eventually. Maybe ten or twenty years, or more but, if it is done right, it is just a matter of when. When research, right habits, and attitudes are used, definitely the return will happen. But, not tomorrow. Keep that in mind. Especially if you are just starting. Do not hope that tomorrow when you wake up, you will have the returns you are expecting.
Most people invest in instruments because it is the trend. It is the hot instrument at the moment and they see people earning big amounts from their investments. They are able to buy a car or their own house because of the return they got from their own investments. So, they buy the same investments and check every now and then how much have they gained. Seeing that chart going up daily makes them smile and just a matter of time, they will become rich.
Or so they think.
Investing and emotions
When that bar chart, example for stocks, starts to go down, you start fearing losing money. But, still hope that it will go up tomorrow. Well, it didn’t happen. You are still losing money. So you start feeling that the investment is worthless so you start selling to minimize your losses. This is a good thing. This is right. But come the following day, you see that the chart goes up. You feel and think you wasted that opportunity and go and buy again which is now at a higher price than what you have sold the previous day. You think that you’ll stay. That investment will go a long way.
And you wake up the following day. The chart is on the downtrend again. Much lower than the other day. Cutting your losses again, you sell. By this time, you feel a little bit sad and want to pull out everything. There is no reason for you to keep doing this and losing money. So you pull out, all of your investments.
Another day, another surprise. The investment you pulled out from is gaining traction and earning more than what you were hoping for. You wanted to get in again. But you do not have enough money to buy as your losses reduced your funds.
And this cycle goes on and on. That feeling keeps on and on. You let your fear get the best of you. You lost. Your emotions took hold of your decisions and your actions are based on what you feel. And this leads to nowhere. Nowhere near your goal of being rich and wealthy. Nowhere near living a good life.
Because you tied your investment with your emotions.
Invest in what you know
Investment should be treated differently. It should not be about the bar charts. It should not be about what other people are able to buy after their investments. It should not only be about being rich and wealthy, although that is the goal of it. It should be about something else.
Before investing, you must know what are investing your money on. A simple meaning to this is if you are going to give someone money, what will that person do to give it back to you with interest? How will that person make the money grow?
Take the following as an example:
- Multi-level marketing. When you buy in, how will you make money? Either selling stuff or recruiting people. And to make more, you have to sell more stuff or those you recruit must recruit too. Because you’ll get a percentage of the income of those you recruit and those they recruit.
- Stocks. Buying a share of a company means you give them enough capital to grow their business. What is the nature of their business? How will they grow?
- Cryptocurrency. These are not real assets. You can not hold it. You can not see it. What is the purpose of holding a crypto cryptocurrency? How will it increase in value?
And there are so much more.
When you invest because you see the bar chart, again stocks for example, going up without knowing what is that business doing with the money, you will only get emotional and lose more money.
Doing research and understanding first is the key to a good investment. It requires hard work. It will ask for time. It will require effort. By doing so, you take out the emotions out of investing and only be logical on where you put your money in.
Now ask yourself, are you ready to do the work?
Do the work. Do not be emotional.
Investing will require work. Do not just ride the trend. It will not help you. Do your own research. Understand it better. Consider that you are giving out your money because you believe in what that investment instrument can do. That they will succeed because the business is viable and will last long.
But if you just want to be rich and wealthy and ride the trend, you would not win.
So, be smart. Do the work. And you will notice that after you had done the effort and invested, you are richer and wealthier than you were yesterday.
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