Where does the investment mentality known as "impostor syndrome" originate?
Many people are afraid to invest because of the losses that past generations had to endure. Investors' money either vanished, became worthless, or was stolen from them throughout our history. Friends also tell us about the awful times they've had. So, worry never goes away; we can't be sure that our money will be around. Just when you think you've covered every possible scenario—the portfolio is well-diversified and risk-free—something unexpected happens on a global scale. Just like today, for instance. This is known as force majeure, and our insurance does not cover it.
Impostor syndrome is linked to a lack of so-called supports, according to psychological research. In the world of investing, pillars refer to the essential information, abilities, and objectives required to carry out a task. A person may, for instance, desire an impossible thing—a rapid influx of cash without considering the potential downsides or other subtleties. Of course, he doesn't build any confidence-boosting infrastructure in this scenario. The fact that seasoned traders might not give novices the attention they deserve is another source of confusion. The rationale for this is that novices often try to win big by being overly enthusiastic and daring.
However, it is only after gaining significant expertise, such as via years of trading, that individuals start to sense the market's pulse. They typically have a lot of self-control, stick to their plans, and play by the book. True, they won't give newbies any respect because of their lack of experience and carelessness, which can make them feel even more out of place.
Having an internalized view of oneself as a little child is common among these folks. A person can think, "I may be little, but the world is enormous." The feeling of helplessness, as if I had no responsibility whatsoever, is overwhelming.
We often hear them thinking:
• Who am I, anyway? I'm sure there are more interesting people in the world.
• You can't begin to live lavishly if you haven't lived well.
• The likelihood of my success is low.
• I risk losing the money that my family has already lost.
• Nothing matters since it will all be taken away eventually.
• I'm terrified that someone will find out my true identity if I mess up; • I'll look foolish, and everyone will make fun of me. I shall be exposed as a fool and a loser.
We all pretend to be someone else and go places we don't actually exist. That being said, imposter syndrome is quite common. You can dwell on it and do nothing, or you can recognize your want to invest and enhance your quality of life, and then figure out how to make it happen. Recognizing and then acting upon negative attitudes is the first step in breaking them. The first step is to settle on a career path; for me, that's investing. Second, learn the ropes. For instance, you can network with other successful investors, meet other respectable people in the industry, and learn from their mistakes.
Yes, we have had bad experiences as a family and as a nation, but we live in different times, and we must accept it. Similarly, they can be affected by any catastrophe; but, what am I to do at this moment? On what kind of good deeds may I depend? Opportunity knocks during times of crises. Making sure you notice and make use of them is of utmost importance.