In the investment circle, everyone knows the golden rule of setting targets for investments. But how many investors actually put that into practice when the crunch comes? After all, greed and fear often come into play whenever we make important financial decisions. To build wealth, you must learn how to manage your emotions in your investments
Investors often make irrational decisions, leading to losses in their investments. They sell their stock holdings when the stock market crashes and buy when the market booms. When they lost money, they blame their stock brokers, they blame the market, they blame the stock analysts. They blame the whole world except themselves. What most investors failed to realize is that the greatest investment enemy is within ourselves and that we failed solely because of our ego and fear.
When I started investing as a newbie 13 years ago, I belonged to this category. I felt like a winner when I made money from my stock investments and a loser when I lost money. Over the year, my thinking changed as I read from self-improvement books, articles and magazines. I came to realize that managing your ego and fear is crucial to our decision-making and that when it comes to investing, it’s not about winning or losing the game. It’s about setting our personal targets and not let greed and fear rule our heads.
Gambling and investing are not the same. We are unable to manage the outcome of the former, but for the latter, we can always make wise decisions and produce a positive outcome. Control your destiny and grab the bull by its horns!
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