How to deal with fear when investing
The latest episode of What Your Bank Doesn’t Tell You dives deep into a topic that many investors grapple with but few openly discuss: the fear of investing. Our Co-founders Luba and Tonia take you through their personal experiences with investment anxiety, shedding light on how even seasoned professionals struggle with the emotional aspects of managing their own money.
Breaking the Myth: Even Experts Feel Fear
One of the most striking revelations in this episode is that financial professionals, despite years of experience in banking and trading, still experience fear when making personal investment decisions. A key anecdote comes from Luba, who shares how, despite two decades in the financial industry, she hesitated when it came to investing her own money systematically. The psychological barriers she faced—fear of loss, uncertainty, and emotional attachment to financial stability—are the same ones that haunt everyday investors.
The Psychology of Fear in Investing
The discussion highlights that fear is deeply rooted in human psychology. Luba and Tonia explore how fear of loss can paralyze investors, even those who understand market trends and economic cycles. The episode also references the 2020 market downturn, drawing comparisons to previous financial crises and how market psychology can cause hesitation at moments when investing opportunities are ripe.
Strategies to Overcome Investment Fear
To help listeners manage their own fears, the hosts introduce practical steps that can make investing less daunting:
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Journaling: Writing down thoughts and concerns about investing can help uncover emotional biases and bring clarity to decision-making.
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Start Small: Investing an amount one is comfortable losing can ease the psychological burden and build confidence.
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Follow a Plan: Establishing a disciplined investment strategy prevents impulsive decisions and helps maintain focus on long-term financial goals.
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Make Volatility Your Ally: Instead of fearing market fluctuations, use them as opportunities to buy strong assets at discounted prices.
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Diversify: Spreading investments across different assets and timeframes reduces risk and mitigates short-term market swings.
Turning Fear into Action
The episode concludes with a strong message: Investing doesn’t have to be an all-or-nothing game. The key is to acknowledge fear, understand its origins, and take controlled steps toward financial growth.
Wealth-building is a journey—one that requires patience, education, and emotional resilience.
For anyone struggling with investment anxiety, this episode serves as a powerful reminder that fear is natural but manageable. With the right mindset and approach, anyone can turn hesitation into confident financial decision-making.
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