Investing taps into different aspects of the investor’s character and skills. Some experts advise: “Check emotions out at the door”. I’d take that with a grain of salt.
The word “emotion” can be written as follows: e-motion! Without e-motion, we become robots without power. Emotions give taste to life, fuel our existence, make us “feel”, appreciate, and love…
In the context of investing, the key, when it comes to emotions, is to channel them productively. Capitalize on the positive, and let go of the negative. This is easier said than done.
Two major emotions dominate investors’ minds: Fear and greed. Fear of picking the wrong stock, fear of holding a stock too long, or too short, fear of losing, and fear of winning! You might wonder: Does anyone fear winning? Yes. The inner images we hold about ourselves, our self concepts, limit how much profit we “afford” to make, and propel us to sell when we hit that limit. How to change that? Study self esteem. Expand your self concept. Allow yourself to be wealthy. Wealth is an inside job, always. Have the courage to be wealthy! The whole Universe is wealthy, and you are an integral part of that wealthy existence…
Greed, on the other hand, could be fatal. It usually kicks in after the first or second successful transaction. You put all your capital in one share, or even worse, you risk money you don’t own, or money you’ll need in the near future.
So, how should an intelligent investor address his/her emotions? Here’s a quick hint: remember that good businesses will always be there at attractive prices, so there’s no need to rush. Take your time reaching an intelligent decision, then act with confidence.
Emotional intelligence is a skill that can be learned and applied to different human endeavors; investing being one. Carefully read a book on the subject or attend a seminar. The bottom line is to approach the investing adventure with a clear mind, accurate information, and a calm, open heart.
To be continued…
The Wealth Maker 