The Mental Psychology Of Investing

This is an old piece from HYIPBlog which I think should still be shared with everyone here.

It comes as great surprise to me when people who put their savings on their line to some specific investment, and either lose a chunk or the whole lot of it and don’t move on from there. I’ve been through that stage, and I know what kind of pain any kind of ‘investors’ are facing when they realize that their money is lost.

You could come up with a lawsuit against the scammer if you know the identity, but chances of recovering is usually slim once the money is spent, which comes to the basics again

Never Ever Spend What You Cannot Afford To Lose

Be it in any form of investments, forex, mutual funds, hedge funds, stocks, commodities and even HYIPs. There are no guarantees (or at least I haven’t heard of any sure-win) in the future on how your money will perform in nay-said funds. Yes, even for forex managed accounts, your account might still be margined even though you have total control of your account since its under your name.

Look at how NSFG has performed, you get what I mean.

Due Diligence is still a Must

At least the very basic I know, is to get whatever information that you can, and not listen to your friends and cheerleaders only for what you will be investing on. I sure had my ups and downs from the past 4 to 5 years with scams, ponzis, and a few genuine ones that washed down the drain eventually.

Due diligence might not be the key to your investment success, but at least you’ve done your job by scoping whatever you could, and know where and how to go on with the next course of action should anything happens.

Keep a Lookout

Keep on reading and learning. I started with HYIPs, I’ve seen through the little tricks that admins try to do. They’ll just swallow you up like no one’s business as soon as your funds keep going into their accounts. Those who went in first reaps the benefit of those who came in last (short ponzi definition). Through time, I’ve learnt, forex really could do you a favour. HYIPs wasn’t wrong that forex can give fantastic returns (at a price).

Everyday is a learning day for me when I read up interesting things. That’s how I got to know Dan from Life Holdings as he shows me how forex could be even more fun and even gambling when done correctly can be your friend. Reading up means you’ll know more about where your money is going and how is it gonna work for you in terms of growing instead of working against you, losing wise.

Expand Your Social Circle on the Same Interest

You like investments? You prefer a passive income through the investment arena? Pick up new friends through forums and blogs. Feel free to email or message them anytime you want to learn something new. I’m sure those people who joined forums in the first place have always been looking out for friends and information too. On top of my head, I’d recommend HYIP Discussion, Nobs Network, Golden Talk if you are interested in making friends who dabbles with HYIPs. I sure haven gotten a few good friends like Sharon (Nobs), Tony (Nobs, HYWD), Dan (LH) , Steve and Tianx (IS), Simon (OIO) and a lot more.

Picking up friends on the same group means that they’ll keep a look out for you too if you guys happen to use the same tool for generating your returns on investments.

Never Ever Spend When In Doubt

Never ever, ever spend when in doubt. You see emails coming in giving hot tips on recent stocks (and many of them talking on the same counter), you’re desperate, you think you’ve gotten some real insider’s tips. You don’t verify the source. BAM! You get swallowed when you start placing money in.

When you have the iffy feeling of spending your seed money on the wrong thing, you’ll know it. But when you hit the spend button, be it from your E-gold account, your Paypal account, your credit card, or even your bank wire, there is no point of return (unless your investment proved you wrong by showering you right with dividend and returns)

Never.. Ever Blame God or Pray Things Will Go Smoothly In Your Way

What’s the point of doing it? I see this as a REALLY bad excuse of blaming your religion when things go wrong. You’ve made the choice, and you’ve decided on the course of action on your own. Why pray god that things will go straight to your direction when things go wrong? Fix it on your own by moving on! See this comment on the recent Global Pension Plan thread from one of our readers and you’ll get what I mean.

Hi Abdul,
I am not an old member like you but like you I have also signed in my three year old daughter. Let us all pray to GOD that GPP pays, let us put in our hopes and beliefs to generate enough positive energy to counter the naysayers. I HAVE EXPERIENCED AND SO DO BELIEVE IN THE MIRACLE WORKING CAPACITY OF PRAYERS.
We work hard enough to give our children the best we can, GPP payout will better it.

Iamrich

Move on. Really. Spending time wasting on prayers (no pun intended, and in no way offending any religion. you still have to do your prayers for good health and a happy life) that things will come straight for your investment and go on and think about how to make money or even do some planning on your spendings to curb with any kind of lost that you have suffer in case of any failed investment.

Never Ever Quit Your Job Unless You’re Warren Buffett

I’ve recently quit my job. No! Not because I’m doing well in investments or so, but to pursue my dream. That’s two different issues now. Just when you think that your money in investments is pulling off and giving you handsome returns monthly, doesn’t mean that it will never fail (I’m touching wood for you). So do whatever you need to keep yourself afloat and save up the money from any investment tools that you have gotten returns from for rainy days.

As I’m working hard on the revamp of the site, I’ll drop more lines when I can. Feel free to add more to the list if you like by dropping a comment or saying Hi on Nobsnetwork, cheers.