Don't be afraid to make mistakes, but minimize their cost
Posted: Tue Jan 07, 2025 5:40 am
Without failures, there will be no experience and understanding of your weaknesses. But mistakes should be manageable, so as not to throw you off track for a long time. It is better to enter into 10 small transactions of $10 thousand than to invest $100 thousand once and burn out.
Painful losses, by the way, can negatively affect intuition and further reduce the propensity to risk. Therefore, invest in small amounts and do not invest credit or borrowed funds, for inexperienced investors this is most often a disastrous step.
2. Communicate more with different people from the industry.
Meetings, acquaintances, exchange of experience, discussion of cases form a keen eye and understanding of human psychology. Learn to read verbal and non-verbal signals, match words with malaysia whatsapp phone number deeds. It is especially useful to communicate with those who have already had their share of mistakes and are ready to talk about them. Their experience will protect you from typical mistakes.
3. Study the experience of successful investors and businessmen.
Read biographies and interviews, analyze their deals and decisions, try their approaches on yourself. This will develop strategic thinking and understanding of investment principles. Remember that everyone has their own path and starting conditions, and there is no universal recipe for a successful investment. Other people's experience is useful, but it is not the ultimate truth.
4. Trust yourself and your feelings.
Intuition only works when you give it a voice. If you constantly double-check yourself with logic and calculations, then intuitive skills will not develop. Of course, making decisions based only on your sixth sense is also not worth it. But you need to find a balance between intuition and analysis.
5. Include people you trust in the decision-making process.
Discussing ideas and projects with different experts, especially those who have experienced failures and ups, helps to form an objective view and collective intuition. A good rule is not to invest in a project if at least one of the trusted partners does not like it. This insures against unjustified risks.
And don't be afraid to share your suggestions with your colleagues, even if it seems like the idea will be "stolen." It's a mistake to think that someone will immediately want to take on your project.
Read on the topic: The Dark Side of Decision Making: How Cognitive Biases Destroy Business
Painful losses, by the way, can negatively affect intuition and further reduce the propensity to risk. Therefore, invest in small amounts and do not invest credit or borrowed funds, for inexperienced investors this is most often a disastrous step.
2. Communicate more with different people from the industry.
Meetings, acquaintances, exchange of experience, discussion of cases form a keen eye and understanding of human psychology. Learn to read verbal and non-verbal signals, match words with malaysia whatsapp phone number deeds. It is especially useful to communicate with those who have already had their share of mistakes and are ready to talk about them. Their experience will protect you from typical mistakes.
3. Study the experience of successful investors and businessmen.
Read biographies and interviews, analyze their deals and decisions, try their approaches on yourself. This will develop strategic thinking and understanding of investment principles. Remember that everyone has their own path and starting conditions, and there is no universal recipe for a successful investment. Other people's experience is useful, but it is not the ultimate truth.
4. Trust yourself and your feelings.
Intuition only works when you give it a voice. If you constantly double-check yourself with logic and calculations, then intuitive skills will not develop. Of course, making decisions based only on your sixth sense is also not worth it. But you need to find a balance between intuition and analysis.
5. Include people you trust in the decision-making process.
Discussing ideas and projects with different experts, especially those who have experienced failures and ups, helps to form an objective view and collective intuition. A good rule is not to invest in a project if at least one of the trusted partners does not like it. This insures against unjustified risks.
And don't be afraid to share your suggestions with your colleagues, even if it seems like the idea will be "stolen." It's a mistake to think that someone will immediately want to take on your project.
Read on the topic: The Dark Side of Decision Making: How Cognitive Biases Destroy Business