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 guaranteed to go up!" Sometimes the advice comes from a neighbor, or a close friend. It may even come from your own 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 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. The next is making a quick buck. Lets not forget to mention greed, the king of all emotions. All of these cloud judgment and prevent you from thinking clearly about how an action affects your portfolio. It doesn't take long for disaster to strike when this kind of thinking is in play.
My emotions were extremely difficult to get under control when investing. I was finally able to control my emotions and let my logical side control my investment decisions. In order to do this, I developed a system that I use to invest with consistent success. I have certain parameters that I follow to guide me towards the right kinds of investments. It is a logical system in black and white. Now I remain focused and stick to my strategy even when that emotional beast tries to rear its head.
There is no shame in making poor investment decisions over and over. The good news is that you can change things starting right 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 while the stock market was in a free-fall! 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. Please, take the advice of someone that did that very thing! - 23218
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 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. The next is making a quick buck. Lets not forget to mention greed, the king of all emotions. All of these cloud judgment and prevent you from thinking clearly about how an action affects your portfolio. It doesn't take long for disaster to strike when this kind of thinking is in play.
My emotions were extremely difficult to get under control when investing. I was finally able to control my emotions and let my logical side control my investment decisions. In order to do this, I developed a system that I use to invest with consistent success. I have certain parameters that I follow to guide me towards the right kinds of investments. It is a logical system in black and white. Now I remain focused and stick to my strategy even when that emotional beast tries to rear its head.
There is no shame in making poor investment decisions over and over. The good news is that you can change things starting right 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 while the stock market was in a free-fall! 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. Please, take the advice of someone that did that very thing! - 23218
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.
posted by X - Men @ 12:13 AM
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