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Last Tips & Tricks

Controlling ones emotions

Stock investing tips by Mike Langevin

 

Participating in the stock market is a constant emotional struggle. When you buy stocks and you are fortunate to see their prices rise a bit, you feel an irresistible urge to sell and walk away with your head held high having just made a small profit. If your shares start to slide, you will monitor their negative progress with anxiety several times a day in the hopes that this will magically cause an upward trend

The stock market is not a place for emotions as they make it difficult to make rational decisions. when you’re obsessed with the smallest price movement, the joy of a rise or the fear of a decline, you will ultimately be overwhelmed with emotion and stress and you will react differently to what logic would dictate.
Emotions are the main factor that prohibit most investors in achieving significant profits with any consistency. If you can’t control your emotions, any advice or strategy will not help you. How can you correct this problem? We are all human after all.

The best way to do this is to have specific rules that tell you exactly when to enter and when to exit . Whether you use technical analysis, fundamental or stock picking services , you must use a method that you are confident in that will allows you to make decisions based on logic and that are void of all emotions.

To conclude, you must know your limits, if you are losing sleep, you probably have too much money in the market and you will act emotionally. Once you have eliminated emotions and you abide by a sound investment strategy, you’ll have all that is necessary to become a successful investor.

 

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