What is equanimity?
It is keeping your emotions under control.
The point is not to get excited and euphoric when things are going your way at the same time not to get depressed when things are not going your way or the environment is bad.
From the year 2020, one of the lessons, I have learned is that it is difficult to understand the markets, as it is a place where people make emotional decisions. To be successful in markets, you have to control your urges. What I mean is, do not sentimental in the market.
In markets; volatility cannot be avoided. All of us crave stability and fear volatility. However, is life always stable? No. It is not. All of us have experienced the highs and lows that life has to offer. Yet, hardly anyone has stopped living due to that.
Very few have always stayed indoors merely because 'anything may happen' once they move out. Most of us want new experiences, even though we are not entirely certain that those experiences will always be pleasant. However, most of us are also sensible enough to take adequate safeguards.
Similarly, volatility cannot be avoided while investing in equity. However, it can certainly be managed by adhering to time-tested investment principles.
How to be an Equanimous Investor?
- Never try to time the markets
- Focus on your financial plan
- Focus on your goals and cashflows
- Never envy someone
- Want excitement? Play Casino
- Take help of auto-pilot investing mode
- Remembering- we can't sow something today and reap tomorrow
- These are some of the traits you can follow, to be an Equanimous investor.
- You have to do very few things right in your life so long as you don't do many things wrong.
Best Wishes of The New Year!
The author is the Founder and Catalyst at Aaditya Chhajed Financial Services and can be reached at firstname.lastname@example.org
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