Behold the power of the mind!
"It's hard to beat a person who never gives up!" Babe Ruth
For most people living on a limited budget, investing can seem like a chore. Having to set aside hard earned money each month for some far off end goal. It can also be a roller coaster ride of emotions - seeing your investments climb, fall or simply run sideways! And for those of us out there categorised as 'contrarians', being sat on a roller coaster would be akin to 'Driving Miss Daisy'!!.......
So what is a Contrarian?
By definition a contrarian is a person opposing or rejecting popular opinion or current practice. In the context of investing, this would refer to those currently buying gold, silver and mining stocks (a very simplistic view I know!).
I often wonder how I've continued to keep composure, despite my investments either falling or moving sideways in action. Is it naivety / false sense of hope? Maybe! But I would say its more down to the fundamentals. I simply look at things with a level head and take a view as to the likely direction an asset will move in based on key information to hand.
With respect to precious metals and the mining sector in general, be in no doubt - these will all become 'mainstream' investments again, but for us contrarians out there we are effectively loving the 'unloved'....before it's loved again! And this brings about great opportunities to build wealth by 'getting in' early.
Mental Test
...And this is where the mental test really comes into play! Buying when something is at its absolute rock bottom involves both skill and an element of luck at the same time. Most, like myself, will have bought in just before the bottom and so have seen our investments fall further. This is where doubt sets in!
Now I appreciate that this might sound really 'far out there' but I believe that we can shape our own reality by just the power of our mind! Whenever, I have a little niggle, I keep focusing on where I will be living in the future (it's a custom built house, built into the side of a hill, surrounded by green fields, near to the sea!).
You need to accept that you can't control exactly when it will happen but just know that if you've done your homework (research) it will come true. Getting obsessed with short term price action will nuke your mind. Forget it unless you're an expert trader. Buy and hold is my philosophy!
Accept that it's like a saucepan full of water. At first, only the odd bubble here and there, but the longer its kept on the flame the more it begins to bubble... until eventually it's boiling over!!!!
Stay positive (visualise winning!) and never, ever GIVE UP!
