Practicing Mindful Investing
Stress can seemingly come from anywhere, but most often, it’s provoked by finances. When numbers seem to control our personal senses of ability, freedom, and survival, it can be beyond nerve-wracking to try to control them.
Then add in the risk factor of investing, where there is not only a possibility of multiplying your money, but potentially losing it all as well. How do people do it without losing their minds?
Truth be told, the majority of investors—even the professionals on Wall Street—have lost sleep over their holdings in the market. Volatility can make anyone’s heart skip a beat, and no human is completely immune from that.
The key is finding and incorporating personal practices that can help you weather the inevitable waves and cultivate your sense of security amidst any storm. Here are some tips to help you start your investing journey with a little more confidence and mindfulness:
1. Know yourself
Before even putting down a dollar, it’s valuable to know: What is your risk tolerance? Your “risk tolerance” is how much risk you’re comfortable taking on, particularly in the context of investing.
Big investments can reap big gains– or big losses. Being strategic in what you’re most comfortable, willing, and able to take a chance on will help protect you from any unforeseen circumstances.
2. Focus on your goals
Set your intentions: What are your financial goals? Is it to retire at 30 or ensure that your family has enough when you’re 60? Do you want to jump in for the #WallStreetBets ride?
Whatever your objectives are it’s important to be clear on them before you make any significant decisions. Knowing this, coupled with your risk tolerance, can help narrow down the most aligned options for your investment portfolio.
3. Equip yourself
Find resources that you trust. This includes reputable sources of stock information online or receiving support from licensed and registered investment advisors.
Prepare yourself with a team and a toolbelt. It’ll help you feel like you’ve got ground under your feet even when the market is shaky. And of course, Bumped is here to help how we can.
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4. Take your time
This may sound counterintuitive given the “rushed” feeling the stock market can perpetuate– we all know the popular “buy/sell right now or you’ll miss out!” mentality. But if you want to actively trade in the market, it counts to do thorough research first, and that deserves quality time spent. Ask yourself:
- What kind of stocks are you interested in? Why?
- How are the prospects of those stocks? Research the company stock. You can always view details about a mutual fund or ETF in its prospectus.
- Are any reputable sources sharing information about these stocks? What are they saying and is it consistent?
- Getting a full picture from all angles on the stocks you’re interested in can help you determine whether making an investment is the right choice for you.
5. Honor your values
If you love a company, then investing in it may be a way of “voting with your dollar.” That being said, it’s helpful to find the balance between head and heart. Investing solely based on emotions can create more risk, but it’s worth also trusting your gut!
Make a list of the companies you want to support, but then follow through with the due diligence to determine if investing in those assets is safe. Review the previous steps for support.
6. This, too, shall pass
If we remember anything from stock market history, it’s that volatile waves will always come to pass (eventually). Everything in life has a cycle– the changing of the seasons is also reflected in the shifting tides of our society and economies.
When in doubt, try having patience! Take a break from the screen and the noisy market analyses. It’ll all still be there whenever you choose to return to it. What matters first and foremost– above any market valuation– is your sense of center. Taking the time to rest and recharge helps ensure our brains (and nervous systems) are prepared for the world of investing and beyond.
Our best choices are made from a perspective of clarity. When we take the extra effort to slow down, we may open ourselves up to perceive more options, solutions and routes. With decisions as big as our financial investments, those mindful moments matter!
How do you practice thoughtful investing? Share with us on social media!