Many of my financial strategies involve patience and self-control. Heck, even attaining an emergency fund takes patience and self-control.
Where understanding how patience has the most payoff is when you’re invested in the stock market. All too often people set themselves in positions where they sell too low and buy too high. When you’re in stocks, you must have a long-term strategy and exhibit a fine display of fortitude.
I’ve been investing for just over five years now, and have had the opportunity to witness the market’s epic fall to its recent bullish state. After taking a look at the data associated with past investments, it is easy to see how investing in reliable stocks over the long-term can be one of the most reliable investment strategies. This is in stark comparison to the day traders and people who are compulsively (or more methodically) buying and selling often. Investors often don’t account for the transaction fees associated with a buy and sell and can lose quite a few gains strictly to the fees!
You may be asking how shaving relates to investing.
I recently received a safety razor set for Christmas and have taken to learning to shaving with it.
This is what one looks like:
Since I’ve gotten it, I’ve learned to practice even more patience and put time and care into learning to shave to avoid all the cuts and missed whiskers that can be associated with a fast and careless shave with one of these puppies.
I’ve translated these learnings to my own investments strategy and I think the persistence and patience translates well into ensuring that you don’t buy and sell rapidly or try to time the markets even when they turn bearish.