Does experience help you become better at investing?
When you think about making money by investing
, you may think about those that have done it well. A prime example is Warren Buffett. Over his life, he’s amassed billions.
Or if you take a wider look at society, older people tend to be the wealthiest. Surely they’ve learned from their experiences and this has made them successful at what they do to grow their wealth?
Well perhaps not. Ben Carlston in AWealthOfCommonSense.com
believes that experience has little to do with being good at investing. Those who hold a lot of wealth in the stock markets feel the impact much more than someone who doesn’t.
So experience doesn’t help them. Younger people will feel the effects much less.
How you can be successful at investing
One thing you should bear in mind is that experience doesn’t translate into wisdom. In fact, experience can lead you to make mistakes due to what’s happened in the past.
To succeed at investing, don’t think that you have lots of experience to do well. Instead, being successful at investing comes down to studying, staying humble and practising self-awareness.
The driving force behind many investors is their emotions. This leads to irrational decisions when it comes to their investments, which hurts their long-term returns.
So there you have it. Why you should remember these key aspects to be successful at investing.
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