Learn To Get Your Emotions Under Control Before You Invest In The Stock Market
1:30 AM
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 is, for many of us, that emotions rule the day. They are so powerful that we often ignore our rational, logical thoughts. The hope for a quick buck or opportunity to "get rich quick" gets those emotional juices flowing. You must realize that it is not the rational side of our brain that is tripping us up, but the emotional side.
Many sound investment plans get ignored 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. More importantly, you'll be able to stick to your 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 this type of trader that cannot overcome emotions while investing. They often lack the experience that allows them to treat investing like a business, and not like a game of poker.
The main driving emotion for 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. All of these cloud judgment and prevent you from thinking clearly about how an action affects your portfolio. When this type of thinking is in play, disaster can strike rather quickly.
When investing, I had a difficult time getting my emotions under control. I was finally able to control my emotions and let my logical side control my investment decisions. To help me do this, I developed an investment system that I use over and over with consistent success. I have certain parameters that I follow to guide me towards the right kinds of investments. This system is black and white, very logical. Now I remain focused and stick to my strategy even when that emotional beast tries to rear its head.
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!
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 is, for many of us, that emotions rule the day. They are so powerful that we often ignore our rational, logical thoughts. The hope for a quick buck or opportunity to "get rich quick" gets those emotional juices flowing. You must realize that it is not the rational side of our brain that is tripping us up, but the emotional side.
Many sound investment plans get ignored 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. More importantly, you'll be able to stick to your 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 this type of trader that cannot overcome emotions while investing. They often lack the experience that allows them to treat investing like a business, and not like a game of poker.
The main driving emotion for 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. All of these cloud judgment and prevent you from thinking clearly about how an action affects your portfolio. When this type of thinking is in play, disaster can strike rather quickly.
When investing, I had a difficult time getting my emotions under control. I was finally able to control my emotions and let my logical side control my investment decisions. To help me do this, I developed an investment system that I use over and over with consistent success. I have certain parameters that I follow to guide me towards the right kinds of investments. This system is black and white, very logical. Now I remain focused and stick to my strategy even when that emotional beast tries to rear its head.
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!
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 covered call trading strategies that can restore your dreams.
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