Keeping The Emotion Out Of Stock Investing

Everyone has emotions and sometimes it can be hard not to but when it comes to financial situations it is probably best not to react based on your feelings. All through out the history of stocks, it has followed a partner of going up and down. Sometimes assets skyrocket in growth just to go crashing back down. Sometimes this can lead to a bunch of rollercoaster emotions. Mixing investing and emotions together usually does not have a positive out turn. If you are investing based off emotions it could lead to you buying when the asset is high which can lead to the loss of your money and then eventually if you rely on your emotions again it can lead you to sell low (potentially loss of profit). Everyone understands that money is an emotional subject and could lead to making the wrong decisions.

Here are some tips you can use to reduce mixing emotions and investing together:

1. Set financial goals

Setting financial goals can help you see the bigger picture when your emotions have gotten the best of you. Having goals can always keep your eye on the prize by allowing yourself to hold on to the asset during tough times. Other times, having goals allows you to pull your money out of the asset at the right time which in turn could help reduce your loss. 

2. Fight the urge to check on your investment too often 

I know when you first invest your money either for the first time ever or when you have just bought a new asset it can be super exciting. This can make you want to check it everyday, 3 times a day, every hour, you could simply get obsessed with your new investment. Checking your portfolio this often does nothing for you and your money, instead it creates anxiety, panic and bad judgment decisions.

3. Assign a professional buffer

Sometimes watching your investments can be emotionally taxing and you need a break. You wouldn't want to panic buy a stock because of some hype you heard over social media or the news and you wouldn't want to stress sell when the charts start to dip.

4. Understand exactly what you buy 

Having an understanding about what stocks you buy, can help you not have an emotional outbreak. Always be sure to do heaps of research before investing. Investing should not be a rushed decision as it can potentially put you at a financial risk. When researching, try to learn about how the investment will help you reach your goals and how you will exit if it gets too risky. 

When reacting too quickly and letting emotions cloud your judgement, it can cost big financial mistakes. Investing For Life promotes healthy investing and to seek professional help when needed.