Self-confidence when investing is important. Overconfidence is dangerous. It’s knowing where the line is!
Investors can often believe they are making the right decisions, but often the decisions are not right, instead, they feel right. How can you distinguish between a decision you are about to make and know it is right rather than ‘feeling’ right?
I recently talked about scammers. When you make your own financial decisions, it’s important to get them right. Mistakes can be very costly. Scammers are big mistakes. You lose your money. You can also lose your self-confidence. Bigger mistakes can be compounded but you don’t know you’ve made a mistake. It’s why it’s important to talk through your decisions.
In big-picture terms, when you accumulate money, someone else wants to manage it. If you give them your money, at some stage, you will want it back. Whilst the financial system does have checks and balances, it is far from perfect. As such, caveat emptor always applies. Most investors are not Superman or Superwoman. They need to talk through their ideas before execution. Welcome to The Wealth Coach.