When it comes to investing, mentality may be more important than knowledge and skills, because what sometimes drives our investment behaviour is not our knowledge and skills, but our mentality.

It is natural for investors to be concerned about investment performance. However, being too focused on gains and losses may affect our ability to make sound investment decisions. We should approach investments with a calm mindset to avoid being emotionally involved and accurately assess the fair value of investments. In the rapidly changing market environment, we should maintain a clear mind and avoid becoming greedy when the stock market rises or fearful when it falls.

Does a knowledgeable investor always have a good mentality? It is not necessarily true. Developing a calm mindset takes time, and it cannot be learned in school. Some basic investment principles help investors cultivate a calm mindset. For example, investing for the long term without being distracted by short-term market movements, investing within your means, and selecting investment products that match your investment objectives and risk tolerance level.

Staying calm allows us to manage our investments with ease and avoid feelings of anxiety and frustration caused by market fluctuations. Health is the biggest wealth. We should not let investment matters disturb our appetite or sleep.

Investment returns are associated with investment risks, yet people often only focus on the returns and overlook the risks. This mindset easily leads to underestimating investment risks and investing in products that exceed their risk tolerance. Retirees should be cautious with their investments. They should keep in mind that high returns come at a high risk and avoid investing in products that may incur significant losses.

Many elderly people find investing difficult and therefore lack interest and motivation to learn. To learn retirement investing well, we need to first overcome the belief that investing is difficult to learn.