Until now humans still have instincts that were brought from their ancestors
to survive.
These instincts are obtained instinctively so that they are free from
anything that threatens the safety of themselves and their families.
The problem is that there are some survival instincts that can actually harm
investments, if you apply them raw. Here is a further explanation.
Immediately Consumption
Eating is very important for human survival. If it is delayed, the food will
be spoiled and cannot be consumed anymore.
Now this survival instinct is still applied by humans. Where many humans
only focus on short-term survival and spend a lot of money in the present
moment.
As a result they do not have much money to meet their future needs.
Therefore, you should leave this habit and start saving and investing for
future needs.
The important step you need to take is to consume less than you can earn and
set aside some money for the future. In investing you are not recommended to
spend money all at once.
For example, using all the money you have for investments, or putting
investment assets in only one instrument.
That's because spending all the money on investments can leave you with no
money left to meet your daily needs.
You are recommended to invest using cold money, or leftover/unused money
after all your needs are met.
So, if your investment is down or exposed to risk, your financial condition
is not too affected and you can still live life.
Support Majority Vote
Here's another thing that could jeopardize your investment. Humans who live
socially and in groups make them work together and try to support the same
voice as their group.
Instinct like this makes personal decisions to be taken will be influenced
by the voice of the group that may move in the opposite direction.
Instinct like the one above is actually suitable to apply when you want to
choose the best restaurant based on previous user reviews, book hotel rooms
based on recommendations, and so on.
The problem is that the thought process as above will greatly affect the
investment results in the future.
So you prefer investment products based on past performance and immediately
sell investment portfolios when everyone else is selling them.
As an investment savvy, you need to be able to know when to ignore the crowd
and make decisions based on your investment approach.
Especially now that there are many new investment instruments that are
called promising and loved by many people.
Do not let you buy it without analyzing in depth and just following the
trend, yes! This will have an impact on your financial future.
Don't want to take risks
Being the first to market a product or technology allows you to earn much
greater wealth.
For example, when you become an early investor in a start-up company that
becomes very successful and can provide high investment returns because of
soaring stock prices.
Avoiding risk is actually very dangerous and much more risky.
For example, when you save all the money you have in a savings account and
don't get enough returns to beat inflation.
Too afraid to invest makes your purchasing power will decrease over time.
Therefore, you must start to get used to investing with the aim of
developing the funds you have.
The explanation above explains that the human survival instinct does not
always need to be carried out raw.
There are several examples that show that survival instincts can be
detrimental to your future investment returns.
Tags
Finance