Have you ever got in front of a large group of people to give a speech only to experience that sudden tingle of nervousness and fear before opening your mouth? At this point, you have two options, either remove yourself from the spotlight, or continue with your planned speech. You decide to go with the latter, take a deep breath and give your speech. Usually upon completion of the speech, you will say to yourself, "That was not that bad after all" and feel like public speaking is your new niche.
Although this is a trivial example, we find the more we experience, the less fear that we have. This is especially evident in today's market due to the fact that those of us who are new to investing look at the market today and see that it seems like the "Great Depression" is coming for a second time around. However, for those who are more seasoned, they know this current economic condition to be part of a financial cycle that is completely normal to the economy. They have lived through and experienced the economy during the early 1980s (which was dubbed a "recession") as well as when the technology bubble burst in the early 2000s.
They know that historically, the market recovers and surpasses the point at which the economy slowed. So while many of us are afraid to dive in, pull out our money and use techniques such as Dollar Cost Averaging to make more money, they patiently continue to follow their investment plan and continue to increase their shares in the market. As illustrated by the initial example, a lack of experience can cause imminent fear and hold us back from reaching our goal.
Experience as defined by Wikipedia:
Experience as a general concept comprises knowledge of or skill in or observation of some thing or some event gained through involvement in or exposure to that thing or event. The history of the word experience aligns it closely with the concept of experiment.
(Link to Definition of Experience)
Below are some of the ways that experience can be used to increase your overall stock price:
- Experience is the best teacher.
- A mistake is not a mistake when a lesson is learned.
- During my initial entry into the stock market, I went against the recommendations of my colleague and invested heavily into the financial market during November 2007. As most know, this was the beginning of the mortgage meltdown and I lost about 50% of my initial investment during this time. I learned a lesson to perform more due diligence and to develop a sound financial strategy rather than betting blindly.
- Never be afraid to try something new in fear that you will not get it right.
- "Anyone who hasn't made a mistake, hasn't learned anything"
- Experience is fulfilling.
- I went White Water rafting for the first time a few months ago and it was a BLAST. During the trip up to the site, I was nervous due to my fear of the river. However, by having an experienced guide, my fears were calmed and I had the adventure of a lifetime!
- So much focus is placed on "learning from mistakes" through experience, however there are times when you get it right! Do not forget that there is a 50/50 chance to succeed during your experience.
- Experience makes you stronger/provides hope.
- Once you have gone through something, you know what to expect and do not have the same fear to go through it again.
- Knowing that you have accomplished something builds onto your confidence and helps you know that you can accomplish more.
What is holding you back from experiencing new things and taking control of your financial future? What are some of the experiences that you have had (good/bad)? Feel free to share with us your thoughts on whether you would do it again.
Stay Disciplined!
Posts
No comments:
Post a Comment