Joseph O’Connor is an up-and-coming investor, consultant and strategist operating across blockchain, artificial intelligence, cryptocurrencies and other areas of finance. He’s learnt the hard way about the pitfalls of being a hesitant or confident entrepreneur can cost you a lot of money. If you’ve just started learning how to invest or develop your entrepreneurial skills, then 2020 has either been the best or worst year to start (depending on who you ask). While you’ve been exposed to everything that could go wrong during a financial year, there’s a good chance you’ve ended up in the red. It’s been a learning curve for a lot of investors!
At the end of the day, all you can do is learn from what is in front of you, which is why being impatient, overconfident or frightened can cause a plethora of heartaches later. Here’s some critical advice from O’Connor, which he shares with all his followers.
If you’re fearful, diversify your portfolio
Being a fearful investor will likely inhibit your ability to invest in great opportunities. You’ll end up missing out on extraordinary chances to enhance your wealth and be full of regrets. If you are more conservative about your investment choices (which isn’t a bad thing), then O’Connor recommends diversifying your portfolio. If you want to invest in cryptocurrencies, spread your investments across several securities, like Bitcoin and Etherium. The same principle goes for venture capitalists financing small start-ups. Don’t put all your eggs in one basket.
Impatience will hurt you, so have non-negotiable limits
Impatience is the cardinal sin of investing circles. The whole “get rich quick” mentality is a scam and will only cause you heartbreak and pain in the long-term. If you are impatient and aren’t happy with quick money, then consider another profession. The early days can be languid and there can be long periods where there isn’t a whole lot reward. However, this is no excuse to begin chasing money or profits. Instead, set yourself strict limits on each account – you can even organise to have credit limits on specific accounts through your credit provider or bank.
Be prepared to lose before you win
If you hit the ground running, then it’s important to celebrate your early success. However, you must realise that at some point, things won’t go your way. It would help if you were prepared to lose before you win while recognising that the reverse principle applies.