There isn’t an investment deal in the world that is without risk, so everyone should have a somewhat healthy fear when dealing with the stock market or elsewhere. However, too much trepidation could cost you some serious money.
For instance, suppose you backed out of a lucrative stock years ago because the market took a tumble? How much would it be worth today, had you held onto the stock and endured the tough times? Obviously, making money isn’t as simple as waiting out a storm, but there are many people out there who are kicking themselves for selling too quickly when they experienced cold feet.
Building a great investment portfolio isn’t for the weak of heart, which is why the majority of people are content to let their money rest in a simple checking account or in a cookie jar on top of the refrigerator. While you shouldn’t recklessly dump your eggs into one basket, you will never build that retirement fund if you don’t have a serious plan for your money.
As investors, we are constantly battling that natural “fight or flight” reflex. This is that instinct that tells you step out of the way of a moving bus or run from a wild animal. Your investments, however, should not be treated like a wild animal. Instead, you should make careful and informed decisions, lest you “chicken out” of something particularly lucrative. There could be some legitimate money opportunities out there that are invisible to you because you’re blinded by fear.
Some of us also experience this fear not out of instinct, but because we really have been burned in the past. If the bubble burst on a deal you were riding high on, that could certainly be enough to make anyone apprehensive moving forward. However, we must all accept that no investment is the sure thing… and there’s nothing wrong with that.
If you have lost a substantial amount of money in the past, you now have more reason than ever to get back on the horse and get it back. Controlling your money fears is not the same as ignoring your instincts when something seems wrong or shady. Instead, it is about knowing when you are being irrational and could be possibly passing up a great thing.
Don’t let your fear cost you millions of dollars, as it has so many others.
By: Heather Johnson
Heather Johnson is a freelance finance and economics writer, as well as a regular contributor for CurrencyTrading.net, a site for currency trading and forex trading information. Heather welcomes comments and freelancing job inquiries at her email address firstname.lastname@example.org .