Practicing stoicism can not only help you from losing money in stupid investments, but it also allows you to sleep well while having money invested. Additionally, can stoicism help you in a lot of other ways to be a better investor and person in general. This and more is what this blog post is all about.
What is stoicism?
In order to know how stoicism can help you to become a better investor you also have to know what stoicism is. Stoicism is an ancient philosophy from the philosophers Markus Aurelius, Seneca, Epictetus that helps you to have more positive emotions than negative emotions. This is mainly done by living the 4 main virtues of stoicism.
These 4 virtues of stoicism help you in general to raise awareness of what you can control in life. This aids you to only focus on things that are aligned with your values and allow you to react in a manner that is in your control.
This was a very short explanation of stoicism. If you want to learn more about it then you can read the following articles:
The main benefit of stoicism for investing
You are calmer:
One of the main benefits that you have, when you practice stoicism for investing, is that you are way calmer. You don’t get very emotional if prices of your coins go up or down because you know that you can’t control the price. Furthermore, you are aware that can only control to pick promising projects and invest money that you can lose. The knowledge to know what you can control in investing allows you to stay calm when price actions are very volatile in crypto.
You plan and learn more:
Since the stoic mindset helps you to only focus on challenges you can control. You automatically start to plan your investments better, and you start to learn more about potential investments. This allows you to gather more knowledge about the technology of crypto and enables you to understand the market even better.
You don’t change my plan immediately:
If you have a plan on how to invest, and you know what to control, then you don’t make immediate adjustments in your investing actions. This means that somebody could tell you that this coin is going to the moon in the short future (significant increase in value) but you would still stick to your plan. The only thing that you would do is to look the coin up and decide based on your knowledge and plan if an adjustment is appropriate and affordable.
You don’t get greedy or upset:
Being greedy and upset are some of the most dangerous emotions that you could have in investing. You then tend to sell or buy based on emotions and not according to a plan. However, since you have a stoic mindset, you stick to your plan even when the situation does not look promising. This makes you more resistant to emotions.
You don’t lose money:
Since you are resistant to emotions, then you are also far less likely to invest your money into scams or short-term price actions. This secures you a lot of money because you don’t engage in highly risky investments. Of course, there is the possibility that you could make a lot of money in the short term, but it is even more likely that you lose almost all your invested money.
Another reason why you don’t lose money is that you stay invested even when prices decreased significantly. If you believe in a project and the data looks good, then it does not matter if the price is down. You are here for the long term and not for the quick buck.
You can sleep:
When you act exactly as planned and you only invest the money that you don’t depend on. In that case you are under complete control and all the gains from crypto investing are a benefit and if you lose you don’t care since you understand the risks of investing in crypto.
This then results in a good night’s sleep because you have everything you can under control.
Stoicism does not only help you to stay calm and relaxed in everyday situations, but it also helps with your crypto investments. You plan long-term, and you are not easily influenced by short-term price actions that are very speculative.
The stoic investing mindset eventually enables you to take calculated risks in your crypto investing journey.