In this instance, I would advise looking first at your parents’ investment track record. Even if you don’t like to admit it, you probably share some traits with your parents.
Examine whether your parents’ family home has performed well if you believe they have never successfully invested in anything. Alternately, you’ll have to conduct your own experiments to figure out what works best for you.
There will undoubtedly be exceptions to this rule. In the end, only your results will determine which investment is right for you.
2nd Example: investing at the market’s lowest point.
Many investors automatically enter a “waiting mode” whenever negative market news breaks. What are they anticipating? The market is about to crash! This is because they think investing is as simple as buying low and selling high. But why do the majority of people fail to even do that?
Several reasons exist:
It’s possible that a market hasn’t reached its bottom yet, so investors choose to wait when they have the funds to safely invest in it. When the market reaches its lowest point; Since money rarely stands still, it has already been used for other things. If it isn’t going to an investment, it will usually be spent on unnecessary things like repairs, get-rich-quick schemes, and other “life dramas.”
Investors who are accustomed to waiting until a market downturn before taking action typically do so out of either a fear of losing money or a desire to gain more. Let’s examine how each one affects things:
They are less likely to enter the market when it reaches rock bottom because of the negative news if their behavior was motivated by fear of losing money. How can you expect them to have the courage to act when the news is really bad if they couldn’t when it was less bad? As a result, they usually miss out on the bottom.
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