How past investment mistakes help you survive future storms
Every person partaking an investment would know that storms do occur in this business. And that taking lessons from past mistakes could be the lifeblood you need to survive.
In 2013, New Zealand’s failure to bring America’s Cup back home was much a disappointment as it was a reminder of what it takes to succeed. And for its worth, I should point out that achieving the fete would have been phenomenal. Quietly simply, the desire and ability win a yachting regatta presents numerous parallels to the quest for achieving financial success.
Tough investment conditions
To begin with, you need to be absolutely determined and focused on achieving your goals. Because the process is neither easy nor straightforward, but it is achievable.
As an investor, you definitely have set some goals, so now is the time to sketch the road map to achieving them: make a plan. Your plan should include the type and amount of resources you think you will need to accomplish your task.
While you could make this yourself, it is advised that you indulge a team of expert professionals. They will help provide you with the required technical knowledge and skill to build the fastest boat, offer advice on winds, tides, and race tactics. As well as a fast boat, you will also need a good crew to help you along the way. For an investor just starting out, your acceptable margin of error is pretty slim.
Just like the yachting regatta, investing is more tactical than often credited by onlookers. As a result, just being the fastest yacht isn’t enough to win; you also have to take the shortest route. It helps to stay on course, which is only possible if you had clearly mapped out the route you would need to take.
You should know with certainty all the key information: identify and accept your current position. Be aware of potential adverse conditions that might cause you to wander off course. And more importantly, knowing how to get back on track. The discipline to get back on track after a turbulent break of waves would set you apart from the majority of wannabe investors. Choose to stand out.
Your business is just one of the many attendances at a regatta, and every challenge is genuinely meant to help you fail. Quickly simply, if you fall to the challenges is nothing new, but a victory over each gives you experience, confidence and more desire to do well. A regatta is always won one race at a time, and so should your business in light of various inevitable setbacks.
Similarly, as you look forward to finishing the regatta well, it is vital you understand that the stages are as crucial as the final objective. Likewise, do not overlook the immediate step because you focused on the ultimate goal, as it bears the risk of you missing out on both. Succeeding in you tiny challenges today sets you up for the big score later on, just take the challenge one step at a time.
Adapt to situations
No matter the situation, remember your investment regatta is consistently taking place on the same sea, and certain conditions will always remain the same. The winds, tides and your longing to win never desert you. Once you understand this, focus on being better than yesterday, and how better to advance oneself than learning from the obstacles to face yesterday?
Regardless of whether you succeeded against it or not, learn from it. And stem all mistakes from your game, for the success of next time.
Every race carries a risk of loss. To win a regatta doesn’t mean you have to win every race; it means you need more wins than losses. Without taking the risk of a loss, you lose the opportunity to win. Losing is not a reason to give up. It just means that next time, you apply the lessons you have learned and done it better.
When it comes to your financial future, be clear what your goals are, have a plan, get expert help, have a willingness to take risks and the determination to succeed. And when your investment finally pays up, you win. Still, remember all you learned, as the sea is always the same!