Everyone wants to get rich.
No wait, let me rephrase that. Everyone wants to get rich quickly!
Unfortunately, this is not how investing in financial markets work, especially for main street investors like me and you.
So what is the best investment strategy? The truth is MANY strategies can provide success. However, what is the one constant across every strategy?
The best investment strategy is the one you stick with. As soon as you start deviating from your chosen strategy you lower your odds of success.
This is because investing is HARD. Once you start to deviate from the strategy, you’re opening the door for human emotion to dictate money decisions.
Human emotions do not mix well with logic and reason, especially during inevitable times of panic of euphoria. Determining an investment strategy EARLY on that you can stick with is powerful as your wealth grows.
Even for the young investor, practicing some level of diversification can help create the mindset required to hold onto wealth. Being comfortable with “investing FOMO” — blocking out the noise of what your peers are claiming “their returns” are is essential to maintaining discipline.
At the end of the day, what are we trying to accomplish as investors? We are trying to provide ourselves the flexibility to live our lives the way we want and take care of the people we care about.
With the right planning, practicing an investment strategy that we can stick with will put the odds in our favor.
“The longer you stay disciplined and in the game — the higher your probability of success.”