Information and intuition. Many people believe that they have the “knack” to make good investment decisions. What is this “knack”? The fact is that our decisions about how we use our assets can be strongly affected by many factors, some of which may be emotional.
Investing is not without risks. You should consider your goals, time frame, and tolerance for risk. Market conditions can cause fluctuations in the return and principal value. Investments may be worthless or more than they were originally cost when sold.
The Deal of the Day. You have heard that the “next great thing” is out there and you can jump on board, but you must hurry. Do you sound familiar? It can be exciting to be part of the next big thing. There are some great opportunities, but they can also be very costly. It is a mistake to jump on board without knowing all the details. Disciplined investors may avoid spur-of-the-moment trends in favor of solid investments that have consistently returned returns.
High-risk business. Not everyone is a risk-taker. Disciplined investors won’t hesitate to take on risks. They will also try to minimize losses. You may be better able to assess the risks you are willing to take by keeping your ultimate goals in mind.
It’s impossible to know the future. Some investors try to predict the future using the past. We all know that just because a stock has risen yesterday doesn’t necessarily mean it will continue to rise today. Performance does not guarantee future results.
The gut-driven investor. Investors tend to withdraw from investments when they lose money and then invest again when they feel “driven”. They may conduct some research but ultimately act on their instincts. This approach to investing can lead to losses.
Eliminating emotion. Investors “stir up” their investments when significant events occur, such as births, marriages, or deaths. Investors may feel a renewed interest and/or second-guess their long-term strategies. Financial professionals can help you to focus on long-term goals and help you avoid being distracted by short-term whims.
This post was written by All Seasons Wealth. At All Seasons Wealth, we provide expert advice and emphasize the importance of creating in-house portfolios to personalize your strategy for asset management, financial planning, and cash management. We utilize research and perform market analysis to provide you with a Financial Planner In St Petersburg FL. No matter your needs, we can work with you to develop a consulting solution tailored to you.
Any opinions are those of All Seasons Wealth and not necessarily those of RJFS or Raymond James. Investing involves risk and you may incur a profit or loss regardless of the strategy selected. Investing involves risk and you may incur a profit or loss regardless of the strategy selected. Every investor’s situation is unique and you should consider your investment goals, risk tolerance, and time horizon before making any investment. Past performance may not be indicative of future results.