The Mental Benefits of Long-term Investing Beyond Money Making

 

Reading time: 2 minutes

From 2018 to 2023, I dedicated myself to mastering active trading—stocks, currencies, crypto. By 2023, I had to admit the truth: I needed a job to sustain my growing needs as a growing man. The dream of trading for a living was threatening my relationship and financial independence.

I got a job—and slowly transitioned to investing because there just wasn't enough time in a day to sit in front of screens, analyzing and researching. I have nothing against short-term trading, but it didn't work for me, nor do I think I'll try it again in the future.

Lessons as an Investor

Thankfully, every genuine effort yields results—so my active trading experience with patterns, mindset, and market information was now being applied to longer-term investing. And this is what I've learned.

Long-term investing teaches us "Active Patience." Because you know returns will take time—not months, but years to accumulate—you naturally don't sit in front of the screen praying, wishing, or trying to control their direction. Instead, at least what I do, I teach myself skills that will increase my income outside of investing: project management, writing, public speaking. And as my income increases, I invest more in my portfolio, which in turn yields more profits in the form of dividends and percentage returns.

The mental benefits are notable: I certainly sleep better, waking up early to practice skills rather than frantically checking my P&L dashboard. I notice more objective thinking versus wishful thinking, and reduced stress and emotional swings that trading, like gambling, comes with.

In the long run, I believe I'll be a better manager of my wealth with the extra career skills I'm developing. For example, with project management, I'll better invest my funds in initiatives that I can manage myself instead of hiring qualified managers. I can write my own quarterly reports to stakeholders, and I can market my own ideas and values to my staff and clients.

This path offers something trading never could: the space to build a life while building wealth.

Thanks for reading.

Sam