10 Things You Shouldn’t Care About as an Investor

It is not easy to pay attention to all that is going on with the economy, companies, or your own portfolio. People generally get their paper statements in the mail to know what is going on with their investments. Now we are able to watch the changes in the market instantaneously. So, it is more significant than ever to filter out the stuff you should not care about as an investor. As an owner of multiple businesses and an expert business consultant, here are some things about that.

How rich other people are getting

While it is easy to say than done, still if you do not worry about how much other people make can save you unnecessary stress and angst.

What you paid for an investment

Picking stocks is very hard than you think. Purchase and hold are a terrific plan for some stocks. For others, it is the equivalent of an investor death sentence. Thinking I will wait unless I break even is a difficult place to be as an investor because a few stocks do not come back.

Your IQ. EQ matters more than IQ when investing

Yes, some intelligence is needed but Investing isn’t a game in which one guy having the 160 IQ beats the other guy having the 130 IQ. Once you have ordinary intelligence, what you require is the temperament to control the urges that get other people into trouble in investing. There are not many people who can control their reactions. Intelligence alone doesn’t guarantee success in the markets.

Financial advice from billionaires

Ultra-successful people provide some of the worst financial advice. They are simply too out of touch with normal people to offer useful advice. It is necessary to remember these people say stuff all the time that they do not act on. You have to watch what they don’t say. And even then, these people do not know your financial conditions. How can they likely offer you actionable advice? And billionaires have the capability to make big mistakes with their wealth and they will still be fine. If you make a big mistake it is going to hurt a lot more.

How much you may have made if you will have put in more

These fantasies serve no purpose until you know how to spot them ahead of time.

Success in other areas of the life

Your big risk as an investor depends a lot on your personality, emotional make-up, and station in life. The big risk for most younger investors is the fact that they do not know how they’ll react under specific market conditions. At a young age, you do not know how much you do not know yet and that can come back to bite you. For further seasoned investors, your experience can work against you if it lets you become overconfident in your own capabilities. This’s true of people who found success in their life as well. The worst investors are frequently those who assume success in their career automatically translates to success investing in the markets. It does not work like that.

Timing the market perfectly

Investors waste far too much time trying to find a good entry point for their investments. That good entry point is known with the benefit of hindsight. You are far better off putting your money to work when you have some money to put to work and allowing compound interest to make up for any ill-timed buying.

Producing alpha in your portfolio

The entire point of investing in the first place is achieving your financial goals, not beating the market.

The time and effort that you put into the investments

In several areas of life, trying hard leads to good results. But it’s different when we talk about investing. Actually, trying hard and paying more attention to your investments will frequently lead to worse results.

One-year performance numbers

You are likely not as good or bad as your short-term performance numbers recommend. Long-term returns matter much more.

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