How To Be Disciplined With Investing

Just like saving money or living within your means, investing requires a good amount of discipline for it to yield the best results

It is one thing to start a race and it is something else entirely to complete it. In the same vein, many people set out on the journey to invest and not many of them make it far into the race.

Just like saving money or living within your means, investing requires a good amount of discipline for it to yield the best results. Discipline in this context can mean a number of things.

It could mean delaying gratification, not spending every single penny you earn, or even just taking the time to learn what you need to learn before investing your funds. While all of these things and all aspects of discipline indeed sound relatively easy to implement, the truth is that it is a different ball game when it is time to execute it.

It can be challenging in a practical sense where different forms of challenges come up every other day, when your income fluctuates, or when contingencies arise. How do you stand the test of time? Here are some tips:

Start Now

Procrastinating is the first sign that an investor might struggle. The earlier you start learning and investing, the better your chances are of becoming a success at investing. Pushing the commencement of your investment journey into the foreseeable future simply means you don’t recognize the value for it and as unwilling to make the necessary sacrifices for it. Start slow and remain steady until you get the hang of it.

Have a good foundation

Behind every good investor is a workable investment strategy or plan, based on predetermined objectives that are not too far reaching. It is important not to jump this process while investing. This plan is expected to show your personal goals as well as the level of risk for you. These things need to be in place for you to be able to venture into the investment market without issues.

Do not be greedy

A good sign that an investor lacks the required amount of discipline is when he or she is fixated on making quick gains. Not only does this make it apparent that the person lacks what it takes to be successful at investing, the chances that this person would lose pretty quickly are higher.

Have Emotional Self-Control

It is human to be sentimental, but where your sentiments or emotions are disadvantages to your investment, it is best to nip it in the bud – fast. Our emotions can make us very vulnerable and easy to be swayed by news, desperation, or our expectations.

Our emotions, especially when they are based on news or market events, can make us react so illogically and make the worst decisions at even the worst times. If you act out of your emotional bank, there are high chances that indeed you would regret it.

Patience/ Delayed gratification

An investor who doesn’t understand the concept of waiting, would most definitely not succeed in the game. Time is a necessary requirement for investment success and unless you are taking huge risks with your investment, being in a hurry to gain would not give you more than a few pennies – if at all.

As your investment grows, it is natural to be tempted to spend it on something exciting. Ou might indeed need a better phone, car, or take that trip you’ve always wanted. Wait a little longer and you would definitely be better for it.

Consistency

Be consistent with your investments. Consistency covers a myriad of subjects like being able to constantly re-invest your gains, being accountable consistently, making those additional investments at different price points as required, and so on. Do not invest and abandon your investment; rather, it is important that you watch and watch some more.

Written by Lawretta Egba.