What they can't teach you about Market

One thing people don’t understand is how difficult it is to invest. Investment is tough and when you talk about how hard it is, people always think you are talking about the mathematical aspect of Investment, but a 10-year-old child can solve every mathematical aspect of investment. We all know that compound interest has a formula and most of the things you need to understand about interest and your annual return on an investment have a formula.

The mathematical aspect of an investment isn’t always the problem, the common problem that people face when it comes to Investment is the emotional aspect. This is where it could get tricky and this is why most people fail, not because they don’t understand how compound interest works or they are not intelligent enough. It is always because of how emotional it gets when you are investing, your hard-earned money.

Most times, it all depends on how you get your money and that is how you’re going to be emotionally attached to it.

A lot of people will judge you for being too attached to your money, especially if your money drops a few percent in the market and triggers you emotionally. This is because of how hard it is for you to make that money. If you are working in a corporate enterprise where you have to sit down the whole day to make thousands of dollars you might not understand how someone who spends hours drilling, pushing inside the sun feels when they lose a small percent of their money.

Getting attached to your money has nothing to do with how intelligent you are, sometimes it’s something that you cannot explain and this is because of the pain, passion, and the work you put in just to make that money. Even though not everybody behaves like this, this is where the market tests your faith and rewards you at the end of the day. These are the ones people call the weak hands because they can’t just hold their portfolio and they sell early.

You can’t teach people how to react to things

 How we react to things will always be different from each other. That’s why some people will be losing 70% of their money in the market and still be smiling while some people will lose 30% and won’t be able to sleep at night. These are the things you can’t teach and these are the things that determine how the market will reward you. If you can put your emotions in place you are going to enjoy investing.

Investing is one percent mathematics and 99% emotions. It will test you and sometimes can go extreme but if you’re able to hold and not sell and keep doing what you believe in, you are going to enjoy the reward at the end of the day. it might not be as easy as it may sound especially in crypto where things move quickly. Just keep going and keep believing in the project you have invested in.

Thanks for your time.