How Meditation Can Help You Become A Better Investor
Greed and Fear are the two emotions that influence investing behaviour.
Why are some investors fearful when others are greedy and vice versa? The answer lies in human psychology. These emotions are not only associated with investing but also with many other parts of our life.
This piece is about staying unruffled when everybody around is losing it and how a calm mind will help you be a better investor.
Why Shower Tender Loving Care To Your Brain?
All of us like TLC being showered on us.
How about extending some T(ender) L(oving) C(are) to the brain too?
All of us use or abuse the brain 24x7, and not many are not mindful of how exercised the brain gets with the ceaseless inputs that it gets bombarded with.
A Harvard Medical School research study has found that meditation leads to, among other benefits, lower stress levels through cortisol level reduction, improved focus and attention, better anxiety management, chronic pain relief, better sleep, and blood pressure regulation.
How can meditation help your investment returns?
Establishing a regular meditation routine requires dedication and commitment, which fosters a sense of discipline. This consistency can transfer to other aspects of life, including investing by ensuring you stay committed to the plan you have drawn to improve your financial health.
Meditation trains the mind to maintain focus, and this helps distinguish between a signal and noise. This is extremely useful while analyzing data and ensures that one does not miss the woods for the trees.
By helping us reflect and introspect, meditation can help us become more aware of our thoughts, feelings, and biases.
This self-awareness, in turn, can assist us in recognizing when our emotions or cognitive biases influence our investment decisions and take corrective action.
Meditation also helps us temper our emotional responses, which is extremely useful for managing the emotions of Fear and greed often associated with investing.
Also, many of us are prone to anxiety and worry over the impact of external developments on our investments.
Meditation helps improve the resolve to stay steadfast to the financial plan. It also enhances emotional flexibility and helps us stay calm and composed during volatile times.
All these traits culminate into better decision-making, which can result in more informed investment choices, better risk management, and improve the prospects of improving investment returns and achieving our financial goals.
Do take the time to explore meditation and discover how this ancient practice can help you become a more mindful and successful investor.
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