10 Crucial Parallels Between Golf and Investing
People who enjoy golf will tell you that they enjoy the challenge, being outside, and the relaxing pace it provides. While golf and investing may appear to be diametrically opposed pursuits, they actually have numerous commonalities. If you can improve at one, you can probably improve at the other.
Consider the following parallels:
1) It takes time to develop skills. It requires a great deal of effort and time to become a decent golfer. As does becoming an expert investor.
2) To attain your full potential, both require skilled guidance. Even the best golfers work with a coach. Although you don’t want to hire an advisor or mentor for your finances, you can purchase books and other sources of information.
3) It's really easy to fall into problems quickly. A golf shot that lands in the water or out of bounds might be disastrous. One bad investment may not destroy your portfolio, but it can come dangerously close if you don't deal with it quickly and correctly.
4) Controlling your emotions is essential for success. This is not to say that you should not be intelligent and reflective. It indicates that emotions might lead to unwise decisions. Almost every investor has done at least one poor financial choice based on emotion.
5) Be patient. Hurried decisions are frequently poor ones. Take the time necessary to make an informed decision. Rushing a golf stroke rarely ends well. Similar outcomes can be obtained by rushing to conclusions about an investment.
6) Advanced tools are not the solution. Every year, golf technology advances by leaps and bounds. Courses that had hosted professional tournaments are now usually too short to accommodate the top players. However, the average player does not appear to benefit from this advanced technology. Every year, investing theories, strategies, and software get more sophisticated. These tools haven't been proved to boost the ordinary investor's results.
7) Short-term outcomes are not indicative of long-term results. One fantastic shot does not make you a great golfer overnight. One bad game does not suddenly make you a bad golfer. Just because a stock has increased tenfold in the previous several years doesn't imply it can't go any higher!
8) It all comes down to risk management. The finest golfers excel at striking the ball, being calm, and minimizing risks on the course. It's not always clear whether to lay up or go for the flag. Risk is also an essential part of investment.
9) Casual advise is generally wrong. Every golfer has received swing coaching from a friend, stranger, or playing companion. Casual investment advice is also ineffective. If you're going to receive advise, get it from a true expert!
10) Choose your destination. How will you get to a good destination if you don't know where you're going? Each swing on the golf course necessitates the use of a target. This target is picked depending on the barriers and the hole's position. Your investment must also have a goal. What are your investment objectives?
Golf and investing may not appear to have much in common at first glance, but they do. The same concepts that allow a golfer to excel also allow an investor to do so. Planning, patience, and professional coaching are all excellent ways to increase your chances of success.
Get My FREE Monthly Reports
Every Month I Will Send You the Summary of My Real Trades and My Market Analysis
No spam. Unsubscribe at any time.