Success, making lots of money, profits; These words can just make you feel so… delighted at times. What we don’t realize is that we’re the generation of instant gratification.
And I’m going to tell you why it’s a killer.
Many investments with no guaranteed return rate are often scolded by those that are afraid to lose. For example, cryptocurrency, foreign exchange, and stocks.
The truth is, we’re just not adapt to lose. As a beginning investor, your intentions could mostly be about winning and never losing.
Which is dangerous, because instant gratification is like gambling.
You’d lose more than you invest.
Being Skeptical and Selfish
We’re all new investors at one point, and we can be very skeptical of its value due to being afraid of losses and being selfish enough that we want it all.
I felt like I couldn’t lose every single penny just because it was my money.
But, this was what happened…
Initially, I wanted to do stocks and foreign exchange, but they were too expensive and complicated. So I took a leap of faith and invested in cryptocurrency.
Giving that I didn’t want to lose, I dwelled on my investments, hoping to get some sort of return and just sell the coins that I bought.
I sold when I profited a bit, but what happened after was the worst feeling ever.
The cryptocurrencies I invested before grew exponentially.
The value skyrocketed, higher than I ever expected and I missed out on the profits because I was afraid to lose.
I had the fear of missing out, so I invested again. What happened after was heartbreaking.
I theoretically lost 20% of what I invested.
Although I learned to give it more patience, I started panic selling and buying when my patience eventually ran out, losing 10% more because of transaction fees and conversion rates.
I was so upset with the losses.
So I accounted for my actions and told myself this is how you actually lose. I know that many investors will just give up here, but I didn’t because I’m not a failure.
So I reinvested into Bitcoin, gave it patience, and actually let the investment grow.
In less than three months, I gained back all my losses plus made 50% more than what I initially invested.
I finally learned my lesson.
So, Why is Instant Gratification Bad?
Because it’s a guarantee that you’ll lose.
When you invest in anything, you have to acknowledge these three things:
- Investments are 100% lost until you profit and sell.
- Invest in what you can actually lose, and do not be selfish.
- Never let your emotions take over.
#1 – Why should I believe all investments are lost when they are not?
- First, you won’t spend any time dwelling on the investments.
- Second, you won’t panic sell when the investments “temporarily” de-value.
- Third, you’d give it all your patience (when you don’t have any).
#2 – Why should I only invest in what I can actually lose?
Unless you’re looking to go bankrupt when your investments actually go down, don’t invest in more than what you can lose.
Even if you’re not saving up, you still need to eat and pay those bills.
Don’t give it your all, unless you’re prepared to lose it all. It’s not fun when you file for Chapter 11 because you “wanted” that extra million dollars.
Just be grateful that you profited and not lost it all.
#3 – Why should I not use my emotions when I work on my investments?
The truth is that the markets never move in your favor.
Just because you have a good feeling that the investment is going to have its value increased, it’s not going to happen, not overnight anyway.
If you feel that it’s a good investment, do some research.
Make sure the research aligns with your belief.
Closing It Up
Wow, this article is long. I hope you learned that instant gratification is a killer, and remember to invest what you can lose!
If you feel that something is missing, take some time to comment below or email me about it.
Thank you for reading!