The whole idea of investing is to get to the point where your money does the work and you can afford to relax. But you may get there faster by learning to relax now.
Excitement, anxiety and expenses can trap you in cycles of greed and fear. Instead, try breaking out by using a few financial and physiological tricks. It can make the whole process more relaxed — and more profitable.
1. Commit now to doing something later. Stake out the companies that interest you, and set a price you consider a bargain. That way, you’ll be ready to pounce at the next market downturn.
When the downturn comes, you may be too scared to pounce, like everybody else. But if you’re confident now that a company is stable and has good long-term prospects, consider putting in a standing order to buy it at a set price (it’s called a limit order). That way your brokerage will automatically buy the stock when it hits your price, without your having to work up the nerve.
2. Save more tomorrow? Pre-committing is also a good remedy for the tendency to procrastinate. Employees at one midsize manufacturing firm knew they needed to save for retirement — but not just yet because saving felt like a loss of disposable income.
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