Securities Investor Emotions . By Nicholas Litvinoff. control emotions is a key aspect not to suffer the consequences of an uncontrolled market. Then we will know some TIPs to invest with a cool head. How to handle emotions and investing wisely using emotions to our advantage.
The market does not usually move as experts predict, in spite of all those who actively invest in it.
There are plenty of theories that seek to anticipate their movements, cyclical theories (duration of a bull market according to historical averages), theories of schedule (to be fluid in the period from May to October and bought in November to May), theories conspiracy (the "big boys" are driving up the market for amateur investors to buy and then throw it down), theories of the "butterfly effect" (a policy economic taken by the authorities of the stock of a country of Asia passed on to consumers ends of a Latin American country: everything is related) theories weather (hot countries are less productive and hence their bags have lower yields than those of countries cold), among many others.
And in the midst of this nonsense novelistic, balancing against sudden movements that seem to have no explanation, surrounded by analysts whose researchs are often the closest to the speech of a patient with schizophrenia (for how quickly switch between positions polar opposites), trying not to give in to pressures account executives who want to sell financial products and useless hyper complex, the lone stock investors looking to stay calm when deciding when to buy and sell, risking their financial health and often their health to dry.
How can we, as retail investors combat these situations described in pedecer not try?
The answer is much simpler than many believe: controlling emotions.
investor psychology is perhaps one of the most important and least explored of finance and the economy in general.
Let us then 3 tips to consider if we succeed in a market full of hungry sharks like the present:
1) Keep hot decisions cold.
This is, in my opinion, the most common mistake that inexperienced investors comment. After conducting a thorough study, which in many cases can take many hours or even days, defining areas of buying, selling, stops, etc ..., completely change its position when the bell rings and the money starts to spin. An example: After an exhaustive analysis of the chart and the most important fundamentals of the company decided to buy 20,000 XYZ $ 30.30 usd. But the market opens down, XYZ plays the established price, and I do not buy because I'm scared. The next day I watch from the sidelines as XYZ "bounces" as is my analysis, it is very probable that this feeling of frustration leads me to hurry in the next trade and make me into a chain of errors.
2) guardémosla Intuition for astrologers.
is true that some people are born "with skin" with the markets. George Soros, Buffet Warrent, Paul Rotter, are in the group of those few privileged. Is it you. one of them? It's easy to find: make trades based your intuition for a month (with little money, please), and post the result. If it was positive, pay attention to whether the market is in a rally in which everyone wins. I have known (and still do) a few investors that using intuition and called me every day to tell me much money they earned in market rally. When the market corrected one, it was me who called them but never was: the market was cleaned and returned to his previous job. The graphics look more numbers and balances and give less credit to the hearts, unless we're in the market for more than 20 years.
3) If I buy short-term, short-term leave: to respect the spirit of trade .
XZZ bought shares on Monday this week because I thought it was going up, with the clear objective of selling on Friday. The action came down and that Friday I decided to keep it. 6 months ago that I have, I am a 30% down and I would walk to light a candle to San Cayetano (or the Holy of the Exchange, if any) if the market would give me a chance to break even. Does it sound like this story? It is the story of an investor who started a short-term operation went wrong and became a shareholder in the market often turn empresa.El leaves that float aimlessly in the air very easily determined.
For all the above, dear investors, and at times like we are living totally revolutionized the market with almost unprecedented volatility, we are smart: look isolate feelings when negotiating a role, keeping the decisions, intuition aside and respect the philosophy of the trades made, increasing our chances to multiply our savings stock.
Message left via Artebursatil group by Marcelo Alejandro Busquets gomi !!!!! Thanks Marce salu2 Pablo
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