In a field like property investing, it’s natural to have all sorts of emotions, both positive and negative.
They are natural human reactions to stimuli, and situations like a sudden rise in prices or entire crashes are things that will naturally evoke a reaction out of us.
However, it is also essential that we are able to keep these emotions in check whenever we involve ourselves in property investment, or any investment for that matter.
Here are four emotions to look out for, both positive and negative, when investing.
Contrary to popular belief, fear isn’t necessarily a bad thing. In fact, it’s one of our most important emotions, as it’s what prevents us from getting into most unwanted situations. However, the issue with fear is that it also has the potential to keep us away from things we actually want.
More often than not, it’s good to listen to what our gut tells us, but it’s important that we also acknowledge that instinct can only go so far.
The best way to keep our fear in check is to do our due diligence. It’s fine to be afraid and unsure, but most of the time, a good research session is enough to alleviate some of that fear.
Get the facts, not just the feeling.
Much like fear, confidence isn’t a bad thing. And much like fear, it gets pretty detrimental to have it in rather excessive amounts.
Too much of a good always ends up becoming a bad thing, and too much confidence will only result in arrogance.
Not only that, but it can also breed overreliance and laziness. As a byproduct of being overly confident in either our assets, our skills, or our current network, we might slack off on important work such as research, expanding our network, growing our business, etc.
Be confident in moderation.
Unlike the previous two, this is one you just want to outright avoid.
Being greedy makes us solely focus on the numbers. And this includes both the numbers on our paycheck and the numbers on our charts.
This results in a mistreatment and mismanagement of our assets, team members, money, etc.
Not to mention it also hampers our decision-making ability, as we might only make short-term profit driven choices instead of ones that will actually benefit us in the longer term.
This is probably the most dangerous of them all, as this one can directly cause an overabundance of the other three.
The satisfaction of landing a good deal, or getting a fat paycheck, might end up getting us high on pleasure.
And when there’s pleasure, there’s an inherent desire to seek out more. When we enjoy a little too much, we might end up making half-baked decisions.
Or when something good happens, we might get a rush of dopamine or adrenaline, and during all the hype, we might do things that we might not have otherwise.
While it’s good to chase after things that bring us happiness, we still need to stay professional and only make rational decisions.
One of the most essential skills in investment is to be able to detach oneself from their emotions, and as long as you put your mind to it, you can slowly develop this overtime.
However, removing emotions completely from the equation is exceedingly difficult to do consistently, even for the most seasoned of veterans. If you really find it difficult to do so yourself, consider hiring a financial advisor, property manager, or even a coach who can help you throughout the entire process.
Do you want to focus on what you do want in life versus what you don't want?