Most of the mistakes I made in the past I think were "Not to do something early and I should do it more wisely". For example, when I was 23, the Financial crisis of 2007–2008 unexpectedly happened. During that time, I was trying to redeem my investment, even though it was just a $3,000 portfolio. And, yes, it was a big mistake. Five to six years later, I found it was a huge opportunity to invest even more. I did not do my research, conquer my fear, and calm myself down to make the right decision. I think if I had already done my research and learned from more business and investment courses, I would make a better decision. Now, I cannot undo the past. All I can do is face what's ahead.
Every devil was once an angel. I reckon that failures usually bring us two things, depression and opportunity. Depending on how we process them, we always can move toward an opportunity. However, it is easy to say but hard to do. Because depression is always the first that comes to our mind, you have to defeat it before you get the opportunity to grow. Therefore, after going through many failures, I learned that processing those depression moments are crucial to finding a light path later on. Generally, these events do not change how they affect us. It depends on how we think about them. For example, if I hold one bottled water for 10 minutes, it is not a big deal. However, if I hold it all day long, it begins to hurt. My arm will be numb. In my previous investment case, if I always think and feel disappointed about my failure, it begins to hurt me and feeling hard to do anything. Therefore, to fight those depression moments, I must attempt to make changes to my thought and behavior to help improve my mood.
Thinks to the failure, I have become a wiser and more sophisticated investor. I told myself that it is great to make mistakes early. Now, my decision is at least will be not purely based on fear or chaos. I developed a systematic research method and planned ahead before making any investments. Before investing, I assess personal factors such as financial goals, time horizon, risk profile, and market volatility. In addition, I also consider external factors like economic cycles and geo-political risk. Once I have made an investment plan, I stick to it and ensure that it is for the right reasons and not based on impulse or emotions.
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References
DSP Mutual Funds. (2021, February 12). How can you make good investment decisions? Invest in Mutual Funds with DSPMF - Premier Investment Company. Retrieved July 24, 2022, from https://www.dspim.com/learn/articles/mutual-fund-beginner/how-can-you-make-good-investment-decisions
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