The crisis does not have to mean a change in investment strategy

The prerequisite for a long-term investment is business fulfillment, discipline and the right investment strategy. The current financial crisis after years of above-average profits will be a good test. Let us ask ourselves whether the crisis must necessarily mean a change in investment strategy. The theory of open statistics is that it pays to stay in the original.

The basis is to have a good business full

Business is full of the philosophy of access to business. It is very important to define the duties and general rules that the investor will follow in order to achieve the duty. These rules may be used to define traded instruments (shares, bonds, share certificates, products of insurance companies, building societies and banks, real estate), determine the market (territorial, segments) on which it will trade, as (and speed), which wants to define trading, and define another area.
Without a processed business transaction, the investor will not be able to do so, ie if he does not have his lucky star.

Disciplinovanost I dleit

Every investor will face a crisis two or later, when his portfolio shows a loss or low performance. In such moments, the investor finds himself under strong psychological pressure. His real name changes before the winter. Absence of full elaboration and lack of discipline lead to loss of foresight and emotional stress.

His investment breeding will be characterized by high activity and irrationality. The hunter behaves in the same way in other stressful situations. He considers his bag to be rational. Search and find “objective reasons”.

The investor must be disciplined, because his psyche will come under pressure at times when the market develops differently, he would not need.

Crush your fullness

The investment strategy can be seen as a specific strategy within the business framework. The investor must incorporate his income into his strategy, quantify the risks he is willing to take and determine the investment horizon. In other words, the investor has to deal with all three peaks of the investment triangle – input, risk, liquidity.

The crisis always tests investment strategy, discipline and business. In a situation where it is not possible, it is very important to maintain a clear view. Therefore, it is important to rely on business fullness and not give up on the original principles. To do this, you need to be very disciplined. Likewise, the crisis itself does not necessarily mean a change in investment strategy. It is not good to change the investment strategy only on the basis of negative emotions and stress.

It only makes sense to change the strategy if the profitability is changed in a fundamental way and the investor has the opportunity to choose a better alternative, or the investor recognizes new risks.

You dotete yourself at Investujeme.cz.

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