Domino Effect on Investment

Fund-Matters | April 13, 2019 | Financial Habits, Financial Planning, Investing, Mutual Funds, Personal Finance, | 0 Comments

Do you know about those stacking black and white tiles? Well, those things are called dominoes, as I am sure, you already know of. But what do these alternating tiles do? Well, let us take it this way, the whole line is arranged in such a way that you push one tile and the whole line of trail collapses. Hence, the domino effect refers to the trailing effect on relative subjects due to a breakdown.

Basically, what it refers to is the buildup of small things to eventually cause a disruption of such which will have a major negating effect on the things attributed closely. But, what does it have to do with investment? What does the domino effect tell us about investment?

Relativity:

When you consider the fall of dominoes, what are the factors relating to its fall? The size of the dominoes contributes majorly to the cause. What is the problem that is causing the downfall, how big is it? can it be sustained with an effective measure or should be left to its static nature? 

Patience:

Domino effect teaches patience to the investors. It is no doubt that this game is time-consuming and requires extra care with the relativities and conceptions. But, in all the fiasco, you come to a patient person. It remains a notion that by building up small things, you will eventually be bonded with the famous aspect of dominoes effect.

So, when dominoes effect does fall over your heads, cornering you into the fight with investment, be careful of the chances you take in the process. However, what you should do is a whole another topic but is discussed below:

Sort your priorities:

The main focus is to assess the goal you have on the table to achieve. Plan the steps that will lead you to the goal because it is with small contributions that the major dominoes effect takes place in the form of an event.

More than one:

It should not be your goal to stop after you have achieved your destined goal. Your next aim should be to pursue a new goal, a new determination, and a new cause. Your act of stopping would only erase the important decisions of the career you have in mind. To honor the message, one should be reliable over the financial plan, that works for a similar cause.

Maintain the progress:

When experimenting with dominoes, it is not about the last fall, it is about everything in between because if you do not affect the tiles in between then you would never be able to watch the final show. The case is similar to investment with dominoes. You need o focus on the algorithms and calculations to keep the progress sustained rather than cringing about the result that is near.

Do not fall in a trap:

If you keep hold of all the other tips and guides, you are most likely to achieve the kind of progress that was mentioned with the use of dominoes effect in investing. Do not fall into a trap by misleading yourself into mismanagement. C

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