Discipline and strategy instead of emotion and chance

There is strength in tranquility, as the saying goes. But investing is often about emotions. Herd instinct, overconfidence, greed and fear of loss: Old stock exchange master André Kostolany emphasized it at every opportunity: The role of psychology in investments and in stock market transactions cannot be overestimated.

If you look at the financial markets in these weeks, this seems to be confirmed again. Many investors invest either driven by uncertainty and fears or run after supposed megatrends. It would be more natural not to be so unsettled by the events and to think about your investments in peace.

Access to information and transparency are basic requirements for more and more investors before investing in the capital market. Today, these requirements range from the creditworthiness of the issuer to the details of price calculation and regular risk indicators for the product. While access to detailed information was previously reserved for professionals, the offer for private investors has improved massively in recent years, including real-time information. There is hardly any other asset class in which there is such extensive information material as in structured securities.

Since these products are complex instruments despite all transparency, the level of education will continue to grow. The better informed buyers are, the more naturally they will be able to request and process information about products and issuers. The greater the transparency, the greater the understanding of opportunities and risks; not just for structured securities. This means that customers can choose products that are even more precisely tailored to their market expectations and their portfolio.

There can be only one thing: a blueprint for the right financial product. Every investor has to deal with his personal risk-opportunity propensity. Everyone has different financial options and is first asked to save, then invest and ultimately speculate in order to be able to cope with setbacks financially.

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