Hi, straight into it.
Why is investing hard?
Why is investing only for those who have special intellectual traits?
Why can’t you invest?
The truth is that it’s all trash, you can invest and it is not difficult in the sense that you need intellectual capabilities in order to be able to attain good investment results long term. Investing is a game where the 120 IQ beats the 140 IQ, as long as the 120 IQ has emotional intelligence- it starts with understanding that you can do well and create sound returns for yourself in the long run.
Investing is a simple process, all you are doing is laying out cash at a certain time and expecting to get back more cash in the future- there is no complex theorem which makes this hard. The difficulty in investing lies in your own ability to be able to handle your emotions and to be an independent thinker: being able to make decisions on which investments are of sound use to you.
Investing is all about being able to have a simple outlook on understanding assets and their ability to produce cash flow over time. You don’t need to be the best at a certain type of investment game, what you need is the ability to conquer yourself and to stay away from what you don’t understand. A lot of people lose money trying to outwit the market, the simple fact is that you can’t do this sustainably over a long period of time, so you are best off avoiding the markets pitfalls.
To invest, you need belief in your own capabilities and you must thoroughly understand what you don’t know. If you are able to understand what you don’t know and can stay in your own lane, you will do just fine as an investor. The way in which you beat the market is by simply not falling for it’s pitfalls and traps, like some naive investors do.
Investing has always been about beating yourself at your own game and staying focused on what’s going on in your court yard. Always stay on guard about what you let into your mind, don’t chase the hot new thing- stick to what you know and realise that most news is noise and not news. If you can just be able to understand that it is all about thinking independently and avoiding mistakes- you will do just fine in the markets, following these steps will allow you to be in the top 20% when it comes to investing.
To conclude, investing is a simple process and the steps that you need to take in order to attain good results in investing: it’s simple. Stick to what you know, stay away from what you don’t understand and don’t lose money.
You’ll do just fine.
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Thank you for reading and have a fantastic week ahead.