Fears that prevent us from starting to invest: types of subconscious fears and ways to deal with them. How to start the path of a successful investor.

Each of us saw various earnings offers with promises of geting three-digit profit figures. But tell me, how many of you have at least tried to understand what the offer was about? Most likely, most of you dismissed these offers as scam or myth. But those who paid attention to them could earn good money. Many are prevented from earning exclusively by their personal subconscious fears, which can be overcome on a psychological level. In this review, you will learn about the most frequent fears of beginner investors and ways to overcome them.

Eight fears of a potential investor and how to deal with them

I am sure each of you saw the offers to earn 20-50-100% in a relatively short period of time. But tell me, how many times have you ignored these offers without even trying to figure out what it was about? Surely you've heard of investment sharks such as George Soros or Warren Buffet. This is a great example of the fact that nothing is impossible. Or take another example: cryptocurrency. While the majority of people called them the next pyramid, in January someone managed to earn 4-fold increase in capitalization and withdraw the money. If it wasn't you, ask yourself the question: "Why?"

There are dozens of investment options in the world that allow you to earn more than classic bank deposits. Many people even heard of their existence, but prefer to ignore them and go to the banks, which do not even save you from inflation. Some do not even trust banks, losing money due to depreciation. What is the reason for such actions? There can be many:

  • they are not sure that everyone can become financially independent, and they don’t even attempt to take the first step towards financial independence;
  • they see a trick in everything, believing that everyone is trying to scam them, and do not even try to grasp the essence of the investment proposal;
  • they find any excuses that would explain their unwillingness to change things.

Uncertainty of their strengths and knowledge, laziness, fear of change, responsibility - these are the very obstacles that prevent people from realizing their potential. And by the way, this applies not only to the investment path, but also to career growth.

How to become a professional investor: learn to overcome your fear

Eight fears of a beginner investor and how to overcome them

I tried to formulate the obstacles that prevent a potential investor from pressing the button “Invest”. Here's what I got:

1. «All those slogans about big earnings are a myth». Skepticism and distrust of any advertising, any attempt to convey information to the person are the most common reason why people do not even take steps to start. Many people have heard about MMM, and over-the-counter currency markets are considered scam, especially after Pantheon Finance and MMSIC. People just do not believe big numbers, considering them an attempt to play on human greed. To some extent, this fear is justified, since it allows you to avoid investments in truly dubious projects. But on the other hand, it is an obstacle to making money on venture projects, which are often mistaken for pyramids.

Practical advice on how to overcome this fear:

Do not rush to label each investment idea, but also do not rush to believe everything. In any area there are both real projects and fraudsters disguised as them. For example, in the world there are hundreds of investment funds making deposits in real estate, securities, etc. But many people also remember Bernard Madoff's pyramid. If you see an interesting investment proposal, take the first step - understand its essence, the principles of generating income. This is the very first step that many people just skip.

Big money is not a myth. But earning it is not easy. The greater the potential profit, the greater the risk, but advertising will not tell you about it. However, even if you do not reach Soros's level, even some profit, which is more than the current salary, is already a plus.

Do not rush to consider everything as a hoax, try to think critically and analytically. If you take even Forex as an example, which people are skeptical about, think: if this is a hoax, how does the whole industry of the over-the-counter market live? A broker is just an intermediary, and Forex is a separate world, which in essence is very similar to the stock market. And no one thinks stock markets are a hoax, right?

Do not make hasty conclusions - try to understand the issue and only then make a decision.

2. «I do not understand investing, which means I can easily be tricked». This one is on you. What prevents you from taking the creative approach to investment and understanding the possibilities of earning? It is never too late to learn something new and, moreover, to follow modern trends. It will not be easy, true, but it will definitely not work if you don’t even try. For example, someone starts learning programming at the age of 30, and someone starts learning the world of finance only at 40.

Some tips:

  • Define your goal. If you really want to learn how to make money on Forex, mutual funds, crowdlending, the stock market, then study systematically. First, understand what types of investments there are, assess the risks.
  • Develop a training plan. Take time every day trying to learn something new. Chat on specialized forums. Only when you understand deeply how profits are formed and how risks are evaluated, can you begin to invest.
  • Do not rush to believe everything you hear. Recently, many people have appeared on the Internet to “share their experience of successful earnings” for a nominal fee. However, the evidence of their earnings is limited to dubious screenshots of a personal account. Paid courses are good only for one thing - getting connections in professional circles. Therefore, it is logical that there is no point in undergoing beginner courses. If you are going to paid courses anyway, then only choose professionals. But be prepared that you need an average theoretical level of knowledge (the Internet has everything you need). On the other hand, meetings successful investors gives one excellent motivation.

If you want to earn more – start studying and forget about lounging around.

3. «I'm afraid of losing money». This is the fear of risk. Each person has their own propensity to take risks, sometimes over the top. But fear of even trying to take a chance is another thing. This is one of the reasons why people prefer deposits that seem almost risk-free to them.

The first step is the most difficult. I have a few recommendations on how to overcome it:

  • Start small. Be calm about a possible loss in advance. Risk only the funds that you are willing to lose. Diversify risks by investing in several directions at once.
  • Assess the risks. Learn how to properly form an investment portfolio, determining the share of an asset in accordance with the level of risk. This only comes with experience, since there is no single strategy here.
  • Aim for profit in advance. Imagine that the money invested is already lost. And now you need to squeeze the profit out of them.

Failure is an experience. If you really intend to take the path of a professional investor, then be patient and analyze mistakes.

Investing is a separate area of work. Do not be afraid of losses - they are inevitable. Aim for more wins.

4. «I do not have this kind of money». What is the scale to assess how much money is a lot? All is relative, and every millionaire dreams of becoming a billionaire. A person who says that they have no money to invest is either simply looking for excuses, or does not know how to plan a budget. 100-200 USD are enough for investment in stocks or foreign exchange market.

How to find money to invest::

  • Plan your expenses and income. You will see where you spend more, where you can reduce costs, what can be eliminated. Maybe this plan will motivate you to increase the income by investing.
  • Learn to give up something in order to achieve a goal. Each month, set aside a portion of your income to form start-up capital. It also disciplines you by training willpower and patience.

First of all, you must have motivation. Do you want to earn more? Want to learn something new? Want to become a professional in an area where there is no upper limit? Then start small: sort out the investment directions and start building start-up capital.

Anyone who says that they have no money simply do not want to strive for more.

5. «I am used to a stable lifestyle and I am afraid to give it up». This is the most common problem that occurs on a subconscious level. “No money,” “I will be scamed” – these are excuses for passivity, but the real reason is inside. Most people prefer the familiar work-home-family lifestyle. Why change something that is stable and predictable? Why invest money somewhere, if you can spend time and money on a vacation? An investor is a person who leads an active lifestyle, engaging in the development of new strategies, the study of new trends, the analysis of errors and control over the money invested. This rhythm of life is not for everyone.

How to force yourself to step over the fear of loss of stability and break into the crazy world of investment:

  • Tell me, do you consider yourself a happy person? Are you satisfied with everything in life or do you still have goals and dreams? If you are content, and you have achieved all the desired goals, then new horizons are not tempting for you - this is your choice, for which you are responsible. Or would you still like to achieve something in a new field? The advantage of investing is that there are no limits to perfection in financial markets, unlike career growth.
  • Would you like to earn more by sacrificing, for example, your time or rest? Being engaged in the classic work, you can often plan your time. In investing, the more time you spend working, the more you earn. Question: what balance of rest and work would you prefer? Work for 2 days and rest for 8 days outside you town or work for 8 days and rest somewhere in Europe or swim in the ocean for 2 days?
  • Think about what will change in your life if all existing stability disappears. For example, you get fired from work. Can you find a new job or learn something new quickly? The world of investment is always full of ups and downs. There is no stability here, but there is always the possibility that having lost everything, you will get back on its feet. And, of course, form some financial cushion.

There is a first time for everything. You go to school after kindergarten for the first time and get used to it. You get married for the first time and change the way of life fundamentally. It's the same with investing: do not be afraid to take the first step, changing your life for the better. At least, it will not be worse for sure (if you are not afraid of losing your free money).

Start small. Let the investment be your passive income at the beginning, and with the first successes you will see how interesting the financial world is.

6. «I am afraid to lose control the situation». There is a special term for this phenomenon - gambling. It means a person’s loss of control over their emotions. Anger, excitement, euphoria from success - all this can lead to a violation of the rules of risk management and errors in analyzing the current market situation. Alas, this is the most difficult problem, as it is psychological in nature.

How to learn to restrain your emotions:

  • Make it a rule to have a break after a series of successful trades or failures, after a large profit or loss. Watch a film on economics, attend a seminar.
  • Strictly adhere to the rules of risk management: maximum amount of investment, risk diversification, etc.
  • Train willpower, restraint, composure, patience. How? It's different for everyone.

The ability to control oneself, the victory over one's own emotions is already a big step on the path to success and not only in investing. The victory over their own fears as well.

How will other people look at me if I lose money?”.

7. «How will other people look at me if I lose money?» Fear of looking foolish in front of others often stops you from decisive action. Each of us wants to look like a successful person in the eyes of others and nobody wants to look like a loser. Most people prefer to take a passive attitude for fear of failure. It's even worse when others warned a potential investor, but they took the risk and lost money. "We warned you ...". Even imagining this can stop you from the first step.

Forget about this fear once and for all:

  • Tell me, whose opinion are you ready to listen to? You can not be good for everyone. There will always be envy people or agitators. Do you care about the opinion of professionals or your friends and relatives? Professionals will never laugh at the mistakes of beginners, because they have been through this. And true friends will never laugh at your mistakes.
  • Appreciate the opinions of those who have achieved success. As to those who did nothing, let them laugh.
  • Remember that failure is experience. You can fall and rise many times. And the opinion of others should only give you a sense of purpose.

“I never tried but I like to judge others” - this is the philosophy of most people. "Someone who does nothing never makes mistakes".

It doesn't matter what society says about you. There is only a narrow circle of friends and mentors, which is worth listening to. And they will always support you in your endeavors.

8. «I am afraid to take responsibility"». Many of us have become accustomed to lack of responsibility. At work, your superior gives you the tasks, they are also responsible for their employees. In the worst case, an employee can be fired or lose a bonus, but in most cases a person expects a stable salary and then retirement. The investor has to plan their work, builds strategies and is responsible for the result.

  • There is only one solution here: if you want to earn more and follow the path of success - get out of your comfort zone, be flexible and do not be afraid of reasonable risk. If you are not ready for this, then accept the fate of the majority and do not complain about it. After all, it was you who refused the chance.

We are all responsible for something in one way or another. And if the responsibility is there anyway, should you be afraid of it?

Conclusion. All these fears can be reduced to one very important thing - the fear of beginning. The success of an investor depends on their systematized actions, which should be consistent with the developed plan. To become a professional, you don't need need much:

  • Have patience and the desire to learn something new.
  • Do not be afraid of anything and follow a clear plan.
  • Learn, learn and learn again.
  • Train willpower and in no situation lose confidence in yourself.

Invest. And may lady luck smile at you!

Eight fears of a beginner investor and how to overcome them

The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.

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