Don’t Let Testosterone Mess Up Your Investments

Too much confidence = losses

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Men, there’s something we should learn from ladies.

Let’s talk about money. I’ll tell you right away that controlling your testosterone is your #1 skill in capital markets. Women take fewer financial risks but still excel as investors.

Confidence is a good trait but too much of it can screw you over. Don’t be a man who needs to show his confidence by being loud.

This used to work when we were living in caves thousands of years ago. You had to protect your nest. When another man got near your cave, you’d come out, yell, and scare him off.

You had to show your capacity for violence so the enemy would leave you, your woman, and your kids alone. The alternative was a physical confrontation and a possible death.

Now the world is safe. Physical dangers are minimal. Yet men keep this primordial attitude to show their superiority.

Physical strength alone won’t make you macho.

The smartest women I know, the women with the happiest families don’t pick chest-thumping gorillas. They choose calm men who radiate confidence. These are the men who can solve problems logically in a violence-free world.

Your strength comes from character. People see it naturally.

My former university mate Vladimir is 40. He’s not athletic, he’s got gray hair, and his height is below average. Yet women find him attractive.

Vladimir makes $30k a month. He doesn’t need to prove himself. He moves slowly and doesn’t talk much. But when he does, people listen.

His masculine energy shines through as quiet confidence.

You know who tries to look confident but comes across as impulsive? A guy who left a hateful comment under my recent post on the blogging platform Medium dot com.

I explained in the post that dividend income from a portfolio of ETFs is the safest retirement bet. Ignore index funds, aim for cash flow, and you’ll be set for your golden years.

It’s my personal opinion. The post has a disclaimer that says it’s not financial advice.

But the guy knew better.

My advice is so bad it’s criminal. I have no ability in financial planning. The buy-and-hold strategy is wrong. And the word BULLSHIT in capital letters.

You have to accept these kinds of comments if you write on social media. It’s not the first and not the last. I can live with that.

The guy’s overblown reaction shows he doesn’t fully have himself under control.

• Does he really care how I plan my retirement?

• Is it important to him to prove he’s right and I’m wrong?

• Why did he get triggered by a post written by a stranger?

It’s like Mixed Martial Arts press conferences where two fighters trash-talk to stir things up. Only they do it for attention and money. It’s part of the show.

But the commenter on my post? I’ve no idea why being right is so important for him.

I’ve never worked in finance but the people who have, say that males with a high risk appetite run big financial institutions. It’s dangerous.

Big Banks are responsible for several financial crises over the past century. The latest is the 2007 banking debacle. Too much confidence leads to huge financial losses for your bank and your country’s economy.

So when you’re 100% certain you’re right, when you think you know better, take a deep breath and ask yourself if you should clear your head first. Or write a social media post with constructive criticism of another writer’s viewpoint and tag him.

I may also want to throw some insults too. But I must be able to tame my ego.

It’s not rocket science. Take an hour before you reply. You’ll see the world as a more positive place when you’ve calmed down.

And here’s the most interesting part. Other commenters said that

• Index funds are the way to go

• You can’t retire without real estate

• The cash flow from dividends is the safest bet indeed

• Corporate/government bonds should have a place in your portfolio

There’s a truckload of opinions based on age, gender, risk tolerance, and country of residence. Only you can decide which strategy works for you. My goal is to show you the pros and cons of my strategy.

If my opinion triggers your nervous system, you’ve already made up your mind. No problem with that. But you can certainly see the insanity of you getting emotional about my retirement planning (unless you’re my wife).

And now that we know you may strongly disagree with my opinion, try taking it seriously for a second. There’s rarely totally right and totally wrong. My viewpoints come from my childhood trauma, financial safety, rent, grocery bills, and availability of state pensions.

You need to know plenty of details to tell what’s good for me.

This realization makes you admit you may not know something important to pass a solid judgment. It’s wise to accept other opinions.

And it affects how much money you can make in capital markets.

Sure, you need to be confident before you invest in something. Just don’t be too confident. Admit you made a mistake if your stock got slashed in half instead of doubling your money. Then analyze what went wrong.

Benjamin Graham calls this a margin of safety in his book The Intelligent Investor. Look for undervalued stocks but keep in mind you can’t be right all the time.

So start slowly. Don’t invest all your money at once.

Diversify. Some of your bets could be high-flying stocks. Some could tank.

Learn as you go. Investing hands-on teaches you more than watching YouTube videos about stocks.

Exclude overconfidence from your decision-making. Your best investments come from a mental process, not an emotional one.

Don’t let testosterone cloud your mind.

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This article is for informational purposes only. It should not be considered Financial or Legal Advice. Not all information will be accurate. Consult a financial professional before making any major financial decisions.

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