Quiet The Emotional Demons 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. You don't want to lose out on the potential gains. Without batting a rational eye, you invest. Most of the time the end result is much worse than you expected. However, you 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.
Casual investors make the same mistakes over and over again because they cannot shake the demons that compel them. It is this type of trader that cannot overcome emotions while investing. They usually lack the ability to treat investing like a business and instead treat it 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.
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.
There is no shame in making poor investment decisions over and over. There is good news, you can change things starting now! I made that change and as a result I have been more successful than I ever have been investing in the stock market. I also managed to do this when the stock market was in a sharp decline! I promise you, to be a successful investor all you need is a solid investment strategy and the ability to keep your emotions checked at the door. Take the advise of someone that did that very thing! - 23208
Human nature gets us thinking. You don't want to lose out on the potential gains. Without batting a rational eye, you invest. Most of the time the end result is much worse than you expected. However, you 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.
Casual investors make the same mistakes over and over again because they cannot shake the demons that compel them. It is this type of trader that cannot overcome emotions while investing. They usually lack the ability to treat investing like a business and instead treat it 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.
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.
There is no shame in making poor investment decisions over and over. There is good news, you can change things starting now! I made that change and as a result I have been more successful than I ever have been investing in the stock market. I also managed to do this when the stock market was in a sharp decline! I promise you, to be a successful investor all you need is a solid investment strategy and the ability to keep your emotions checked at the door. Take the advise of someone that did that very thing! - 23208
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 @ 3:16 AM
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