Are you an ‘Olympic’in­vestor?

Cape Breton Post - - COMMENT -

tered the po­si­tion of their bodies in the air and taken other fac­tors into ac­count, they have sub­stan­tially re­duced the risk as­so­ci­ated with their jumps. If they were to elim­i­nate all risk, how­ever, they’d have no sport. As an in­vestor, you also need to in­cur some risks — be­cause only by tak­ing risks can you po­ten­tially earn re­wards. But like the ski jumpers, you can help con­trol risks. How? By fa­mil­iar­iz­ing your­self with all as­pects of your in­vest­ment choices and by build­ing a port­fo­lio mix that re­flects your in­di­vid­ual risk tol­er­ance, time hori­zon and long-term goals.

Con­fi­dence: Above all else, Olympians must have self-con­fi­dence; they must be­lieve they can suc­ceed. And when you in­vest, you need con­fi­dence in your­self and your de­ci­sion mak­ing. While you can’t con­trol the move­ments of the fi­nan­cial mar­kets, you can con­trol your re­sponse to them. You can avoid panic when prices are down and com­pla­cency when things are go­ing well. You can struc­ture your in­vest­ment port­fo­lio to meet your needs and make changes when nec­es­sary. By be­liev­ing in your abil­ity to suc­ceed, you can free your­self to act in your best in­ter­ests.

You may never stand on the vic­tor’s plat­form at the Olympic Games. But em­u­lat­ing the best qual­i­ties of the Olympic ath­letes may help you reach your per­sonal fi­nan­cial goals.

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