Rule #1 Finance Blog

With Investor Phil Town

How to Feel Confident in Your Investing Choices

Investing is not something that comes easily to everyone overnight. It’s something that you need to work at in order to feel more confident in.

When it comes to the stock market, investor confidence is very important.

The best thing you can do to become more confident and rational when you invest is to really understand what you’re buying.

Having confidence as an investor helps you to make better decisions when owning a stock over time while allowing you to really understand what is going on at a specific moment in time.



Many people are emotional investors…

When you start investing, you’ll tend to look at what your money is doing every day and when there is a sudden drop in the market, probably right after you buy the company, you’re going to freak out.

When you let your emotions take over your investing, you are more likely to jump ship and actually lose out in the long run, all because the stock you bought took a little dip.

It’s true that fear impacts the stock market

When investing, it’s important for you to have enough confidence in your investments to not let the fear impact you.

Why Rule #1 Investors Are Different?

Rule #1 investors are not emotional investors. We’re rational investors and were confident investors. Here are 3 ways to feel more confident in your investing choices.

1. Understand the Company Inside and Out

You want to know that you are buying from an amazing company so when the stock price does momentarily go down, you are are not triggered to make an emotional move to sell your stock.

One of the benefits of knowing that you are investing in a great company is that you know the company will be around in the next 10 years so, most of the time, it doesn’t matter what happens in the short term, just in the long term.

Beyond knowing a company’s financial metrics, you also want to know that the company is run by great people.

2. Have Confidence in the Company You Invest in

Having more confidence in the company results in more confidence in your investment choices for that company.

When you know that you have really found a great company, you want to do your best to buy it on sale. The good thing is, is that if you do your research and know that you’re buying something amazing,

AND you’re buying it on sale, how could you be upset when it goes on sale even more!? You know what that company is really worth, and you know that it will come back up to its non-discounted price eventually.

Instead of worrying about if your decision was a good one or not, you know it was a good one and you won’t worry about little dips in the market.

When you invest like this it’s hard to not be confident when you know you have everything to gain, because you truly understand a business and what you’re buying.

3. Learn About the Companies You Invest in

In the end, what you need to do in order to stay successful in the market is to learn about the companies that you choose to invest in. By taking the time to really learn about companies, you can figure out if they are a good idea or not add to your portfolio.

Remember the key here is to know what you’re buying and to always stay rational. Don’t let your emotions get the better of you.

Have you ever pulled your money out of a company when the price went down, and then your stock shot up like a rocket?

Learn more about how to take your emotions out of your investing and make great returns from my free Transformational Investing Webinar.

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Phil Town is an investment advisor, hedge fund manager, 3x NY Times Best-Selling Author, ex-Grand Canyon river guide, and former Lieutenant in the US Army Special Forces. He and his wife, Melissa, share a passion for horses, polo, and eventing. Phil’s goal is to help you learn how to invest and achieve financial independence.