Reasons why long-term investments are difficult and countermeasures

Long-term investments are more difficult than you might think. It seems that the average holding period of investment products is about 3 years from now. I also have a habit of messing with my portfolio when I roll around and change my investment style.

I am a human mentality and emotion that makes long-term investments difficult, even with self-admonition. I think I'll write down the countermeasures. I would be happy if it would be helpful for something.

[Reasons why long-term investments are difficult]

① scary

At the time of the crash, they were unable to withstand unrealized losses and sold in dismay. If you have experienced the Lehman shock or the coronavirus shock, you'll understand. I was also upset when I was shocked by the coronavirus.

I'm scared, what should I do about fear? First, make sure you're not taking too many risks. It is important to imagine when current risk assets fall below half of their value. If you feel scared at that time, increase your cash ratio even higher.

② I'm impatient

At that time, the most profitable investment product is attracting attention due to SNS, etc. At that time, I feel doubts about the profitability of the investment products I own, and it is not a good idea to switch investment products over and over again.

Why did you choose that investment product as a countermeasure to getting impatient? What is your own story of choosing that? What are the characteristics of this investment product? Let's try to remember it.

It's not bad to properly look back on them and then switch, but I recommend not changing investment products or changing investment styles in turbulence.

③ I'm bored

To be honest, I'm tired of casually accumulating and investing in classic index funds. There aren't many index funds where price movements fluctuate every day. That's why I get bored.

I recommend forgetting it as a countermeasure. Forget that you're investing in an index fund and start doing something completely different and exciting. Small business, any hobby is fine, let's take a break from investing.

As another countermeasure, challenge high-risk investment products with a small amount of money and gain a sense of excitement about investing. Individual stocks, margin trading, FX, crypto assets, etc. What I want you to be careful about is doing it for a very small amount of money.

※As a self-admonition, I'm very scared, I quickly get impatient, and I'm very bored. I'm a completely unfit investor for long-term investments. But I need a long-term investment.

Don't forget the story of why they raised their cash ratio so as not to be scared, paid attention to risk tolerance, and chose global stocks as the main investment. Try not to watch too much investment SNS.

While searching for something you can immerse yourself in to the point of forgetting about investing, you will search for discoveries that will make you excited about investing. I'm thinking of making a long-term investment with this method.

Major changes in investment style!

The portfolio has been drastically changed!

I was so scared I sold them all!!

What, if there were any posts,

I want it to burst into flames in a big way 🙇