Have you ever considered crossing a busy street blindfolded while talking on your cellphone? This is what a lot of investors do during their investing life. Some get to cross the street unharmed due to dumb luck, but most will get side swiped and bruised, and some will even get run over and never recover.
There are 3 things I suggest doing before crossing the street blindfolded.
1) Understand your environment. Ask questions. Find out what has happened to people that crossed the street blindfolded. Ask the ones that got bruised, how did it feel to get hit by a car? Ask the relatives of the dead ones, what happened when the truck ran the loved one over. Understand the consequences. Find out at what times there is less traffic.
2) Get a guide dog. People that are too busy to invest should just hire someone to assist them. If you can’t pause the business phone call while crossing the street blindfolded, make sure you have a very good guide dog.
3) Take off the blind fold. Finish that business phone call before crossing. Listen for cars. Look at both sides of the street. Confirm that the no cars are coming from either side. Then cross.
Some investors are not aware of the risks they take when they invest, taking unnecessary risks and blowing up. Other investors are very risk averse and decide to never invest. This is similar to a blindfolded person standing the rain not wanting to cross the street and get to shelter. They might be worse off doing nothing. The rain might become a thunderstorm and she might get hit by lightning, or catch pneumonia.
This is what you should do as an eclectic investor:
1) Asses the investment environment. Understand the risk you are taking and the potential reward.
2) Hire advisors, if you lack the time and focus. Have investment portfolio overseen by professional investors. This will allow you to focus on your business. Or use you advisors to learn how to cross the busy streets (those options and futures you don’t understand).
3) Always be learning. Take off the blindfold. Improve you investment system. Have an investment checklist; this is the equivalent to looking both ways before crossing the street.
The takeaway from this post is that there is always a street to cross where you cannot see or hear anything. Be aware of those streets, and figure out if they are worth crossing. If they are make sure you improve you odds of crossing successfully: research, hire guides, and cross the street.