It is another bear market day with the DOW currently down over 500 points and I am sure many investors are feeling the pain. One thing that has been similarly frustrating to me personally has been golf.
Golf enthusiasts will tell you they enjoy the sport’s challenge, the outdoors, and the leisurely pace it affords. Despite the fact that investing and golf may appear like completely unrelated pursuits, they actually have a lot in common. If you can get better at one, chances are you can get better at the other.
Take into account these parallels:
- Developing a skill takes time. Golfers must put in a lot of time and effort to improve. Likewise, learning how to invest well.
- To realize your potential, both require skilled education. Golfers of all skill levels have coaches. Even while you can’t necessarily pay an expert to advise you on your finances, you can buy books and other sources of information.
- Quickly getting into trouble is simple. An out-of-bounds or into-the-water golf shot might have disastrous results. Your portfolio may not be destroyed by one bad investment, but if you don’t react promptly and correctly to the error, it might be very near.
- You must have mental self-control if you want to succeed. This does not negate the need of being thoughtful and knowledgeable. It implies that feelings can influence your decision-making. Almost all investors have erred financially at least once because of emotion.
- Have patience. Decisions made in a hurry are frequently bad ones. Spend the time required to decide wisely. A golf stroke that is hurried rarely works out nicely. Similar outcomes occur when investment decisions are based on hasty judgment.
- Complex tools are not the solution. Every year, golf technology advances significantly. Nowadays, many courses that had hosted professional tournaments are too short to accommodate the better clubs and balls. With this cutting-edge technology, the ordinary player does not appear to raise his score, though.
Each year, investing theories, resources, and software also advance. There is no evidence that these technologies enhance the performance of the typical investor.
- Short-term results do not always predict long-term outcomes. One excellent stroke does not automatically make you a great golfer. You are not suddenly a bad golfer because of one bad game.
• Just because a stock has increased 10 times over the past few years doesn’t imply it can’t increase anymore!
- Risk management is crucial. The best golfers have excellent ball striking, composure, and risk management skills. Making the choice to go for the flag or lay up is not always simple. Risk has a large role in investment as well.
- Sloppy counsel is regularly given. Every golfer has received swing coaching from a friend, complete stranger, or fellow player. The value of informal investing advice is similar. If you’re going to follow advice, be sure it comes from a true professional!
- Be certain about your destination. How can you arrive somewhere good if you don’t know where you’re going? On a golf course, a target is necessary for every shot. Based on the barriers and the location of the hole, this target was selected. You need a goal for your investment as well. What are your financial objectives?
Although they might not initially seem to have much in common, golf and investing actually have a lot in common. The same principles that help a golfer improve will help an investor do the same. Your chances of success can be greatly increased with preparation, perseverance, and professional training.