People are generally really negative when it comes to investing. Even investors are negative about the possibility of earning by investing. The first thing people think about when investing is, when do I get out. This is because they think that they should get out because the market will go down at some point. They are right that the market will go down, but why do they care if it goes down? They obviously believe it usually rises when it is down, then why do they think it is a good thing to guess when it is high?
Negativity, the enemy of an investor
Negativity, is the number one cause for many irrational actions people make. They don't think they can make it for long, so they try to get out at the right point, or worse yet, never even get in. This behavior leads to losses in so many points.
First of all, if a potential investor never gets in, he will never earn. Most of the time it is because of the negativity associated with investing, not that the person is too lazy to start. I mean damn, that person must be really lazy if he is too lazy to make his money work for him. Well, I suppose people might tell themselves they are too lazy to invest, but the truth is negativity again. They look at the possibility of earning and think they won't make it. Of course, it might be that they think they have to be good at it, negativity yet again. I myself, postponed investing for a long time, because I thought it was hard. This is because of the general consensus. Everyone always talks about how investing is about luck etc.
Well, then when investors have started, they face the problem, that they don't think the market will be up for much longer, so maybe they shouldn't invest for long. WRONG. The best way to earn, is to think what will earn you in the long term (I'm sorry, I need to specify this is not advice, because I'm not allowed to give investment advice, it is just what I think). Negativity leads people to cut their earnings short and take their losses heavy. If you do your math, that doesn't sound like it is going to earn you much, now does it?
How to overcome negativity in investing?
Be optimistic or only make investment decisions you can live with. If you're like me, optimism doesn't always come naturally. However, it doesn't have to. You can do some studying/ literature research and come to the realization that investing really isn't that hard and as long as you trust that you did as much research buying those stocks or that currency as you did buying your last computer or dishwasher, whatever, you'll do just fine. As long as you don't freak out when the market does take a dive. That will happen, but the thing is, you never know when. Don't cheat yourself, you don't. So just ride the wave, up and down. Eventually you'll end up on the shoreline where you wanted to be, it just takes time, since you can't paddle, without risking going overboard.
Should I always be extremely optimistic towards investing?
No. I think negativity has its perks. It makes you think. You don't take everything without a grain of salt, so to say. I actually think, negativity will help you find the mistakes, but don't let it control you. Make it help you. Trust your reasoning, not the reasoning of others. Don't trust your gut, unless you want to gamble. You don't have to be a genius to be reasonably good at investing. I can't say if you need to be one to kick ass, but I think the most of us are happy with doing reasonably good.
Instead of stressing over the market, use your energy to calculating realistic earning potentials and how you can make that work for you. By doing that, over time you'll do just fine. Trust yourself.