When people act on emotions they make mistakes. Investors need to ignore their emotions and look at something logically and they need to make rational decisions. Investors need to buy something a ns stick with it for the long run and not sell when they get afraid when the market is low.
Investing is about growing your money over time. Emotions often produce a sense of urgency and can cause a person to make decisions that are not in their best interest. To avoid this, have a plan and stick to it. If this is hard for you, find a “like-minded” friend to hold you accountable.
Emotions will cause you to make hasty decisions when it comes to your money that are not very good. When most people see a investment going up quickly they end up buying it thinking it will keep going up, and many people sell when an investment drops hard. People should do the opposite of what there emotions tell them to do for the most part. Buy an investment when it has fallen not when it is on the rise. You make your portfolio a mix that you can handle and not freak out on. For some people that may be half bond and half stocks and for other they may be more willing to take more risk and have more stocks but they need to not let there emotions control them when the market drops and they freak out and sell. You need to look at investments from the outside, dont get personally attached to them and think that it reflects you if your investments are doing poorly or good. You need to just buy on regular intervoles and dollar cost average your stocks in. If you plan on taking money out of your stocks plan that ahead a long ways before you take it out so you can sell the stocks or bonds that are best at the time, dont get in a position that you have to sell everything in an emergency regardless of what the market is doing.
When people act on emotions they make mistakes. Investors need to ignore their emotions and look at something logically and they need to make rational decisions. Investors need to buy something a ns stick with it for the long run and not sell when they get afraid when the market is low.
Investing is about growing your money over time. Emotions often produce a sense of urgency and can cause a person to make decisions that are not in their best interest. To avoid this, have a plan and stick to it. If this is hard for you, find a “like-minded” friend to hold you accountable.
Emotions will cause you to make hasty decisions when it comes to your money that are not very good. When most people see a investment going up quickly they end up buying it thinking it will keep going up, and many people sell when an investment drops hard. People should do the opposite of what there emotions tell them to do for the most part. Buy an investment when it has fallen not when it is on the rise. You make your portfolio a mix that you can handle and not freak out on. For some people that may be half bond and half stocks and for other they may be more willing to take more risk and have more stocks but they need to not let there emotions control them when the market drops and they freak out and sell. You need to look at investments from the outside, dont get personally attached to them and think that it reflects you if your investments are doing poorly or good. You need to just buy on regular intervoles and dollar cost average your stocks in. If you plan on taking money out of your stocks plan that ahead a long ways before you take it out so you can sell the stocks or bonds that are best at the time, dont get in a position that you have to sell everything in an emergency regardless of what the market is doing.
Great comments everyone. I have nothing to add.