Emotions and investing in stocks
Hi, straight to the point- emotions and investing…
To be a successful investor in the stock market, you have to focus on 2 things. 1 is your ability to manage your emotional temperament and the second being understanding what you are purchasing. If you can’t do these than the stock market is definitely not for you, as these are the fundamentals of successful stock market investing.
Emotional control is madly important, due to the simple fact that the stock market is full of volatility and you can never time when a stock is truly at it’s the lowest point. The ability for you to be able to hold onto your stock during downturns in the stock market requires stomach, you have to be able to keep your emotions out of investing as this is a game that those who stick to logic win.
Curious about what the stock market will return in 2020?
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https://www.forbes.com/sites/johnjennings/2019/12/27/what-will-the-stock-market-return-in-2020/
Emotions are everywhere in investing, most peaks in stocks are in fact due to emotion as are a lot of the huge declines you see in businesses. The stock market is full of investors who speculate and day traders who are causing the stock market to have massive fluctuations, the intelligent investor sticks to pure logic and buys when there is a chance at purchasing bargain issues due to a drop in the market.
You do not need tons of IQ to win in the game of stock market investing, it comes down to whoever can be emotionally stable and patients are the ones who in the long run are able to attain strong investment results.
To conclude, do not invest based on emotions and always remember why you purchased stock during downtime in the market as this tends to happen. The goal is to stick to the logical decision making that initially pushed you towards making an investment- if your reasoning is right, in the long run- you will most likely do just fine.
Thank you for reading and have a solid week.
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