No. of Recommendations: 3
The essentials of investing are: saving, planning, complying to a plan, changing plans when necessary and learning about investing options and new approaches for potential application.

In my mind the performance of these essentials implies that one must be aware of one's individual responsibility for accumulating wealth and the need to delay current rewards for future ones. Where psychology enters the equation, I am not certain.

I can see where one must possess the discipline to make savings a habit and comply to a plan, yet be flexible enough to make adjustments when necessary and to gain new investing knowledge. Are there psychological issues here? Psychologically what prevents people from looking beyond the present and/or having unrealistic expectations of future wealth accumulation - too often based on a get-rich-quickly scheme or more aptly - a dream? The individual impetus to change old habits and form new ones goes back, I believe, to one feeling that they are responsible for their actions and well being.

Many people are not sufficiently disciplined to follow an initial plan and wander from one approach to another without supporting evidence for changes. To establish discipline one must have sufficient confidence in one's choices, i.e. be convinced that investing choices can be made logically and with reason. Being convinced of a logical basis, it would follow that individual initiative in acquiring investment knowledge (and not by group think) could lead to more/better investment options.

Summing this all up leads me to conclude that successful investing depends greatly on one's outlook on life and more specifically whether one judges one has some control over one's circumstance or is a victim of them.


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