Mind exercises for Investments in Stock market; A Healthier mind door to Wealth Creation

 

A healthier mind is way for both successful in life in both in career as well as wealth creation. Therefore, it will be very important to keep your mind active and stay from daily stress, which are doing work in related to investments in stock market and mutual funds on day-to-day basis. Healthier mind will make your decision making power more effective and improve the investment decisions.

Thus, your investment skills are improved by healthier mind. Below are some of the techniques, which will sharpen your mind and these, are good exercises for the mind:-

 

1.       Research and Analysis:

For improving your capability in terms of information about a company, financial statement assessment, evaluating market trends, and for making good well informed decision you have to practices the research and analysis of companies. This will provide you the fair idea about the investments in a particular sector or a particular company.

 

2.       Case Studies:

Case studies will help you find out what are other investors strategies, which has been successful in past. As it is always assumed that in past studies works well for future as well. You can easily analyse their investment decisions and outcome of these decisions as well. You can even study about failures of the companies, which will tell you an idea how to avoid such similar situation companies. This will improve your critical thinking approach.

 

3.       Risk Management Simulation:

You can practice risk management simulation by simulating investment scenarios and then check for potential risks associated with the same. You can easily assess the impact of the risk factors on your portfolio by using that technique. By doing so you will make informed decisions about your investments with risks associated the same.

 

4.       Scenario Planning:

This is also a wonderful exercise in which you can imagine and analyse your investments by considering different economic and market situations. You can imagine what type of stocks you should be invested even when there is global slowdown and recession. Impact of war on particular sector. This exercise will help you to adapt according to the geopolitical affects. You can even shift from stock market to debt instruments by considering such planning.

 

5.       Mental Math and Financial Calculations:

Mental Math and financial calculations will improve your numerical skills and even sharpens your mind. You can do calculations in mind by just analysing the financial books of the companies. This will help you to perform investment according to valuation of the company, Profitability and revenues of the company etc.

 

6.       Problem-Solving Games:

It will be helpful if you engage yourself in problem-solving games or puzzles that require analytical thinking. There are activity games such as chess, Sudoku, or brainteasers can help enhance your logical reasoning and decision-making abilities and help in building bonding with other personals, which will help in relaxing the mind in free time. This will make your investment decisions quick and more precise.

 

7.       Emotional Intelligence Training:

Emotional intelligence training is required so that you should take decisions according to emotions. It has been seen that if any particular investment in a stock or mutual fund gets wrong we generally keep on holding the stock for lifetime, as we don’t want to book losses as we are emotionally attached with the company. We don’t even look at the deteriorating fundamentals of the company hoping for revival of the company. Meditation or mindfulness exercises can be helpful in improving emotional intelligence.

8.       Continuous Learning:

Learning is lifetime process; you should keep on learning about new things in the market such as new software’s, new rule and regulations, new technologies etc. You should focus market trends, economic indicators, world economic situation etc. To do this we should attend seminars, read books, subscribe or follow some reputed advisors; listen to inputs from world influential peoples etc.

 

 

These all will help in making your in sound investment decisions for long term and short term as well. Healthier mind is door to wealth creation.