Are you an ‘Olympic’investor?
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.