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How To Get Good At Investing – Like Seriously Good
Investing is more of an art than a science. It doesn’t follow physical processes. Instead, it obeys the laws of human emotion and limited reasoning, meaning that the market will do things you don’t expect from time to time.
In the old days, people believed that investors were purely rational beings, making calculating decisions in their own self-interest. But that’s not actually what seems to be happening in most markets. Instead, participants are following their passions, and reacting with their emotions – even those working for the big investment houses.
For people wanting to become better investors, this emotionality sounds like bad news. But it’s actually the best possible news you could hope for.
Well, imagine if the entire world was purely rational. That would mean that markets would always reflect the intrinsic value and there would be no way to make a market-beating return over the long-term. It’s only because people aren’t making cool, rational decisions that opportunities are available.
Reading Delta Trading Group reviews, you soon realize that this is the case. Not all investment training is technical. Instead, a lot of it is psychological. In fact, it’s that non-technical, all-too-human element that separates the ultra-successful investors from everyone else. They understand both landscapes.
Don’t Walk Into The Fire
Piece of advice number one: don’t walk into the fire unless you can handle the heat. Right now, bitcoin is surging on world markets. Its value is shooting through the roof, and there’s good reason to think it will continue.
However, not everyone is piling into the market. That’s because some investors just don’t understand what’s going on. Or they think they might understand, but don’t have the confidence to actually play the market.
These investors are smart because they’ve learned something important: you don’t take on challenges you can’t control. The last thing you want is to pile your hard-earned savings into an instrument that doesn’t generate returns or starts losing money.
Be A Tortoise
Have you ever read the book, The Hare and the Tortoise? If you have, you’ll know that playing the waiting game can pay off. The tortoise ultimately wins the race by simply plodding along, while the hair gets continuously side-tracked along the way.
Becoming an investing tortoise means having a 20 to 30-year time horizon. You’re not playing for wins right now but in decades’ time.
Becoming a tortoise is a challenge in today’s information-filled age, but it’s still necessary. Given the amount of chaos and disruption, people who adopt this strategy can smooth out all the short term losses and win big in the long run.
Don’t Handle Your Money
The best investors handle their money as little as possible.
Why? Because simply moving it around creates taxes and fees that quickly add up and overwhelm their capacity to generate returns. In fact, the moving of money is one of the primary reasons retail investors underperform the market. They choose the wrong stocks, and they pay transaction fees for the privilege. Don’t fall into that trap.