Tony Robbins has made a name for himself as one of the world’s top business and life strategists.
Having changed more than 50 million lives and making millions with his numerous business ventures, Robbins has dished out free advice to investors.
With today’s volatile markets, investors have the potential to earn big – but also lose big, too.
Here are five bits of wisdom that Tony Robbins wants investors to keep in mind when investing in 2019.
No Need For Validation
A lot of investors like to have their hands held and told that their investment decision is right. However, Robbins says this is the wrong approach. Investors should not seek to validate their existing investment beliefs but to actively look out for opinions that are different from their own. This is so that they would be able to see other perspectives. With a different perspective, investors might see a new investment opportunity or formulate a different investment approach.
Thinking About Current Events As Trends
Volatility in the market can cause a lot of panic and impact their decisions. Investors should not think of a price shift as an ongoing trend. Robbins points out that boom and bust are parts of the market. Selling out too early when the market is going bust can make it far more difficult to recover. The key that Robbins wants investors to learn is formulating simple investment rules that they should follow despite changes in the market.
Arrogance Can Wreck You
A lot of investors think that once they get that first million, they’re infallible. Robbins points out that this is a big mistake as overconfidence can result in massive losses. Research indicates that male investors are prone to overconfidence and they should rein it in. The best way to stop overconfidence is to invest in index funds. These are low-cost and should be easy to maintain. They also provide a buffer for riskier investment strategies that investors can take advantage off.
Focusing On US Stocks
Diversification is key to investment success. Investors who put all of their money in US stocks are asking for trouble. With a global economy, investing in foreign and international stocks gives investors a chance to weather out a rocky US market with a safe buffer set aside.
Balancing Your Fears
When investors get fearful, they can get into a lot of trouble. Robbins says greed and fear leads to impatience and can often result in investors selling stock at the wrong time. Investors who avoid risk because they are fearful of losing money will miss out on great opportunities. The key is to find the right balance by not making decisions based out of fear.
