If I was honest, I would admit to fear in my investing life. Since I expect to be honest, I will do so. Investing involves fear. Investing includes fear.
Fear Exists
Fear is a healthy and useful emotion. Fear is the consequence of reflecting on the possibilities that could happen. Since not all possibilities are positive, we must account for the negative ones. That is when fear arises.
I would be the first to admit that I misunderstood fear. When I was younger, I felt fear was something to avoid. Whistle past the graveyard, so to speak. I also felt that feeling fear was a sign of weakness. However, later I came to realize that fear is healthy, normal, and to be expected.
A normal dose of fear is a good thing. I don’t want to rush into things without consideration, especially regarding investing real money.
Fear also helps me avoid some of the more dangerous schemes. While some have embraced crypro-currencies, I have not. There are many reasons I have avoided them, one is fear. While some will benefit from crypto, I am convinced that many will not. I don’t want to be among the “will not” group.
Do It
So how does one accomplish anything in the face of fear? I don’t have a complete answer, but in reflecting upon some of my experiences, I have come to the conclusion that fear is to be managed. Managing fear, like managing other emotions, means to acknowledge it, not let it become paralyzing, realizing it will always exist in one form or another, and then do what needs to be done in the face of fear. So fear is here, but so are my goals. I know that I can accomplish my goals even if fear has accompanied me along the journey.
Investing
So where does that leave me regarding investing? There are so many possible things that could go wrong regarding investing. Will I lose my investment? Will it decline in value? Will I be taken advantage of? Will the economy go to hell? Will new laws arise that tax and penalize me?
So, to handle the negative possibilities that dance in my head, I look at the realities in the realm of possibilities. While normal things usually happen, there are always abnormal events, with abnormal consequences going on. I try to take the “middle of the road” path in my mind. Some approaches to investing are more likely to pay off compared to some others. For example, although lottery winnings are often enormous, lottery tickets don’t usually pay off for the average ticket buyer. That is why I am not looking to the latest, hottest gamble or investment. I avoid casinos.
How do you handle fear in investing? Let me know here.
The Scream is a well-known illustration by Edvard Munch, created in 1893. It is made of oil, tempera and pastel on cardboard. In the Public Domain in the United States. Courtesy National Gallery of Norway.
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