You Need To Check Your Emotions At The Door Before You Invest In The Stock Market
We have all been victims of other people's stock advice. "This stock is a sure-fire winner!" Sometimes the advice comes from a neighbor, or a close friend. Many times it comes from our trusted investment advisor.
Human nature gets us thinking. Do I want to risk losing out on these supposed gains? Without batting a rational eye, we invest. The end result isn't usually pretty. However, we continue on and repeat this cycle over and over again.
What is wrong with our thinking? The answer, for most of us, is that our emotions take control of our decisions. They are so powerful that we often ignore our rational, logical thoughts. The opportunity for a quick dollar or hope to "get rich quick" heightens our emotional thinking. You must realize that it is not the rational side of our brain that is tripping us up, but the emotional side!
We tend to ignore many sound investment plans due to emotions. You can, however, quiet that emotional side that forces you to ignore your well thought out investment strategy if you work at it. You can learn to stick to your investment plan through both good and bad times.
Some investors, however, cannot shake the investing demons that compel them into making the same mistakes over and over. It is the casual trader that has the most trouble overcoming emotions in investing. They often lack the experience that allows them to treat investing like a business, and not like a game of poker.
The main emotion driving many investors is the fear of losing money. Making a quick buck is the next one. Don't forget about the king of all emotions, greed. These emotions cloud your judgment and don't allow you to clearly see how a particular decision affects your portfolio. When this type of thinking is in play, disaster can strike rather quickly.
My emotions were extremely difficult to get under control when investing. I managed to finally tame that beast and let my rational side control my investing decisions. In order to do this, I developed a system that I use to invest with consistent success. I have set parameters to follow that guide me to the right kinds of investments. It is a logical system in black and white. Sure, the emotional beast tries to rear its ugly head from time to time, but I remain diligent and stick to my strategy.
Don't feel ashamed when you make poor investment decisions over and over. There is good news, you can change things starting now! I have had tremendous success investing in the stock market since I made that change. I also managed to do this when the stock market was in a sharp decline! Please believe me, all you need is a solid investment strategy and the will to keep your emotions in check to be a successful investor. Take the advise of someone that did that very thing! - 23200
Human nature gets us thinking. Do I want to risk losing out on these supposed gains? Without batting a rational eye, we invest. The end result isn't usually pretty. However, we continue on and repeat this cycle over and over again.
What is wrong with our thinking? The answer, for most of us, is that our emotions take control of our decisions. They are so powerful that we often ignore our rational, logical thoughts. The opportunity for a quick dollar or hope to "get rich quick" heightens our emotional thinking. You must realize that it is not the rational side of our brain that is tripping us up, but the emotional side!
We tend to ignore many sound investment plans due to emotions. You can, however, quiet that emotional side that forces you to ignore your well thought out investment strategy if you work at it. You can learn to stick to your investment plan through both good and bad times.
Some investors, however, cannot shake the investing demons that compel them into making the same mistakes over and over. It is the casual trader that has the most trouble overcoming emotions in investing. They often lack the experience that allows them to treat investing like a business, and not like a game of poker.
The main emotion driving many investors is the fear of losing money. Making a quick buck is the next one. Don't forget about the king of all emotions, greed. These emotions cloud your judgment and don't allow you to clearly see how a particular decision affects your portfolio. When this type of thinking is in play, disaster can strike rather quickly.
My emotions were extremely difficult to get under control when investing. I managed to finally tame that beast and let my rational side control my investing decisions. In order to do this, I developed a system that I use to invest with consistent success. I have set parameters to follow that guide me to the right kinds of investments. It is a logical system in black and white. Sure, the emotional beast tries to rear its ugly head from time to time, but I remain diligent and stick to my strategy.
Don't feel ashamed when you make poor investment decisions over and over. There is good news, you can change things starting now! I have had tremendous success investing in the stock market since I made that change. I also managed to do this when the stock market was in a sharp decline! Please believe me, all you need is a solid investment strategy and the will to keep your emotions in check to be a successful investor. Take the advise of someone that did that very thing! - 23200
About the Author:
Marc Abrams is a CPA with over 15 years experience in financing and investing. Visit Marc's website to learn more about successful stock market and option trading strategies that will get your retirement back on track.
posted by X - Men @ 4:15 AM
0 Comments
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home