Think Opportunity Cost


wealthymatters“Prudent risk-taking should be encouraged by applying the concept of opportunity cost.”-Charles Koch

Ways I Push Myself Ahead


wealthymattersWhen I want to push myself ahead here are some tricks I use.See how they work for you.Do you have some other good ones?

1.When I’m scared of failure I remind myself that even if I fail this time,it wouldn’t be the first time I have failed and that I have survived failures before to come out ahead.I remind myself that the the skills I picked up in failed ventures have helped form the basis of future successes.This has the knack of calming me a bit.

2.When I find myself fixating on worst-case scenarios,I remind myself that I am running the risk of substituting imagination for thinking, speculation for risk analysis and fear for reason.Worst-case scenarios are vivid, but are almost always much less probable. Fixating on worst-case scenarios simply results in plain old bad decision making. Read more of this post

Cut Your Losses Fast


And here’s why……..

wealthymatters

What’s the chance that your losers will give the sort of chart busting returns to recoup your losses?In the mean time you are losing the chance to earn at least savings bank returns on your money.You don’t get to spend the sort of money your managers are losing you.Inflation is making the remaining less valuable.And you are losing out on money you could make by reinvesting in better avenues.

Its painful to lose money but more painful to stick with the losers.

 

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