Behavioural investing is a catch-all term to describe the psychological forces that can profoundly influence investors’ decisions. If we’re unaware of how our emotions affect our decisions (financial or otherwise), we may very well go from thinking there is no alternative (TINA) and acting from a fear of missing out (FOMO) to regretting our decisions.
Our emotions cause us to have blindspots in our decision-making process, and because they’re blindspots… we can’t see them! At Victus Group, we help you to see the stumbling blocks that are holding you back from improving your financial wellbeing. Money has always been a highly emotional subject, and it’s partly why we’re always advised against bringing it up at dinner parties!
But, it’s crucial to have people we can talk to about our money decisions, not only when investing in the markets but also for everyday purchasing choices. The fear of missing out on an opportunity to earn profits or cash in on a sale can drive even the most conservative and risk-averse of us to ignore warning signs. FOMO can trigger panic buying or selling, causing us to sell low after buying high.
It is human nature to regret missing out on a good thing; this fear can make us feel like there is no alternative. It’s difficult to hear of other investors earning more than us in short periods with investment opportunities that we passed up. The worry of losing out on something important may be overwhelming. But it’s crucial to avoid FOMO when it comes to investing.
Don’t try timing the market by cashing out, and don’t follow the herd by piling into the day’s investment trend. Maintain a long-term mindset and stick to your financial plan. Our team at Victus Group are dedicated to staying in touch and being accessible when you feel like you need someone to remind you of how the choices you’re making with your money align with the choices you’re making for your life and your legacy.
Great investors tune out the noise and concentrate on their long-term objectives. This thinking is aligned with Warren Buffett’s advice, “be greedy when others are fearful, and fearful when others are greedy.”