Dealing With Uncertainty

Psychology of Wealth: Dealing With Uncertainty

By John Sage

After years of working with investors,I can discuss in great detail two reasons that people are unable to reach their wealth goals.

1. Misguided beliefs about money and wealth

2. Basing their investment decisions on instinct

In this article,I want to not only discuss more about the irrational beliefs that people have about money,but also what you can do about it.

Exaggerated Reactions to Market Fluctuations

This is extremely common. When things are great in the market,people believe that they’ll last forever and are excessively optimistic. On the other hand,when the market is stagnating or in a recession,they become pessimistic about the future and think things will stay bad forever. Not only is this misguided thinking,but it can close people off to great opportunities.

My advice? Learn to identify a truly significant change requiring action from a regular shift in the market. To do this,it helps to understand the market context over the long-term,not just in the present.

The Inability to Deal with Uncertainty

It’s no surprise to anyone that investing goes hand in hand with uncertainty. This is why seasoned investors follow a set of guidelines to help them objectively weigh the pros and cons of investment opportunities.

Again,it’s crucial to understand the market in the long-term and have reliable investment tools that help you judge risks methodically.

Want More?

For more tips and tools to help you succeed in your investments,follow me on social media and subscribe to this blog. www.johnsage.com.au