Investing and golf will both drive you crazy and even make you question why you participate. Like recent stock market volatility (S&P 500 from 10/1/2018 – 12/26/2018 is down 14.9%¹) or when you slice a drive out of bounds and have to reload on the tee box. Both experiences wear you down creating mental exhaustion. You’ve been coached in both investing and golf, you know what you are supposed to do. Diversify, don’t time the markets, avoid the hot fad, lay up instead of going for two, punch it back into the fairway, lag a putt, etc. But why is it so difficult?
One reason is that we are human and looking for a short cut. If I time the market, I’ll be rich. If I go for this par 5 in two, I’ll have a chance at an eagle or birdie. To be a successful investor and golfer, we must realize there are no short cuts. We have to show mental toughness to achieve long-term investment success and lower our handicap. Neither are easy and both can be scary but only if you let them. Here are 3 tips to help.
Keep your emotions in check
- When you review your portfolio, remind yourself to never get too excited or too disappointed. Allowing greed or fear to intrude will only hurt your future.
- Let your bad shot go, think positively about your next swing. Golf is a grind and you have stay focused on the shot at hand.
Know your limitations
- No one can time the market.
- Punch it out into the fairway instead of riffling through the trees towards the green.
Accept the good with the bad
- Markets will go up and down, staying invested allows you to participate in long-term growth. Remember you are an investor, not a speculator.
- We will miss hit a tee shot, if you are in the deep rough, take a higher lofted club and advance the ball.
Happy New Year!
Thrive Wealth Management