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IA Investing 101 Series: The Investor Mindset

Gabe-Neo - 118 Views
Published on 11 Apr 2021 / In How-to and Style

#Investing101 #TradingMindset #InvestingForBeginners #Winning #InvestingPsychology

Part I The Millionaire Mindset

0:00 Introduction
0:30 Is Investing Difficult? Yes.
1:00 Investing 101 Series:
Skills Required
The right mindset
Financial literacy
Analytical skills
Ability to generate perpetual income
Financial discipline
“Use fear as an engine,
not as a brake.”
-Paulo Coelho
“Pigs get fat and hogs get slaughtered.”
-Rubbery Figures
“Be fearful when others are greedyand greedy only when others are fearful.”
-Warren Buffet
Well Said

Fear is a response to threat
Greed is a response to opportunity
Fear seeks to preserve the self
Fear is a primal instinct, therefore stronger than greed. In investing, fear is the bigger problem.
Fear vs Greed

Fear Takes Over Logic
Examples of FEAR in investing:
Investors become worried about losses and sell at the lowest levels
They are afraid to buy Bitcoin at $9,000 as they feel it is too high
They hold onto losing stocks too long because they do not want to admit loss
Examples of GREED in investing:
They don’t sell after 400% gains because they want more
They own 1000 coins of 10 Altcoins because they want to be a millionaire

Don’t allow your logical mind to be overtaken by emotions, be it greed or fear.

Learn to Take Losses
(This can all happen in a matter of minutes.)

Resist Herd Psychology

Beware: The Gambler's Fallacy
The gambler's fallacy (Monte Carlo fallacy) occurs when someone mistakenly believes that a certain random event is less/more likely to happen based on the outcome of a previous event(s).
Past is no guide for the future
World owes you nothing
Investments owe you nothing

Beware: Overconfidence
A lucky hit with an Alt Coin or a stock can be a curse.
There are folks making money on coins and hyping it up: this is dangerous.
Disaster can strike––hard. When it does, learn from it.

Secret: Play the Long Game
Time gives you options
Time in the market is better than timing the market

Most Important: Consistency
People who trade to get rich quickdo not last
It is all about risk management,build slowly over time
Be patient

Know your style: Scalper, Day, Swing or Position Trader
Find a system, keep it simple
Find a space eg crypto, disruption, value, dividend, etc
Trade only with what you can afford to lose
Paper trade and start small
Don’t over-trade, be patient, think sniper. Trade less not more.
If you are losing, stop and figure out why
Never stop learning
Top Tips

“Some investors have stocks that go up 20-30 percent and they get rid of it and hold onto the dogs...sort of like watering the weeds and cutting out the flowers. You want to let the winners run.”
“Don't buy "cheap" stocks [AltCoins] just because they're cheap. Buy them because the fundamentals are improving.”

Let the Dogs Loose, Hold Onto Winners
-Peter Lynch

“You miss 100%
of the shots you don’t take.”
-Wayne Gretzky

Learn to lose and let it go
Be a good loser
Be humble

“Winners know why they win.
Loser’s don’t know why they lose.
Loser’s find fault.”
-Coach Mick Cronin

“Great investors find their humility.”
-InvestAnswers, April 1, 2021

Have Fun
“When you invest for fun,
It’s much easier and shows in the results.”
-InvestAnswers, April 1, 2021

Remove emotion
Adapt / be a good loser
Use a system that fits your type
Keep learning

Want more?
(you know what to do!)

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