How many of you were drawn to open this message based on an emotional response whether it was fear of actually having lost all of your money or simply curiosity?
See, emotions play a bigger role in investing that many overlook. The number one rule when investing is not entirely a high IQ but control of your emotions, especially fear. Surprisingly enough, when I present my current and prospective clients the idea that loss is imminent.
In this line of business I don’t guarantee yearly positive returns but I will bet my money that you will have a bad year somewhere along your investments.
“Oh but of course, we know this” – investors
Below is a list of major known investors and companies and their worst yearly performance since 2000.
Next time you see poor returns and you feel the need to sell your investments, ask yourself why? Maybe you have a sound conviction or maybe, you are acting emotionally.