Emotion 1: loss
Emotion 2: need
Emotion 3: neutral
Emotion 4: addict
Quick Pick :
The emotion take over when the investor or trader do any things without any reason. The emotion are the greatest enemy for every investor in the world. Any investor who became still today survived these emotion.
While in investing many of them are not aware of these emotion. It’s kill them inside even when the investor is non emotion. People’s of investors need greatest discipline to win these all emotions and persons who controlled the emotion and rationality in stock market are today billionaire’s.
Every stock investing hearts must serviced this emotion before anyone become successful in the stocks market. this article occupied the information about what are the emotions and how it’s manipulate every investor to lose money in the stock market.
Emotion 1: loss
When investor purchase the certain security at some price they wish, after when the security price value decline that’s where the fear start.
If the security value decline more than we expected then the investor got fear more about it.
The fear get drive more when the investor started to lose their investment funds because of decrease in value over time.
There is very less amount of people’s handle and control the fear . Very intelligent investor don’t got fear at all for the reason he/she know that the certain stocks wouldn’t go down very long.
So fear is the first enemy for any investor because of lose in their value of their investment.
Keep eye on why your investing and what your investing in, so fear won’t disturb on the drop of price.
More importantly all the problem started from greed which is most desire need of all investors.
Emotion 2: need
The need is when investor get greed they invest very aggressively. It doesn’t matter whatever happens because believing unconsciously without any reason that certain stock price will go up.
And when the investor money got increase they try buy more and more without even realizing that they are doing right or wrong.
So control the greed is not easy thing while investing in stocks. Most of the people’s think that they are not greedy but when the stock price got increase,
The stock investor wouldn’t being patient, he/she simply started to buy the stock without any strong reason which leads them to lose entire investment.
So being not fear and greed which leads to neutral mind. Most of the investor got confused about neutral so let’s know this.
Emotion 3: neutral
Neutral means not getting fear and greed while investing. But as a investor investing the money over long term with just hope, simply believing that the certain stock would rise in future.
This investor don’t involve in any emotion things and short term fluctuations. But they goal is very long hope so it’s called neutral.
This kinda investors also have strong disadvantage over time. Because even after the long holding of stocks. Their is a high chance that they would lose their entire investment because of simple irrational hope.
So investor who take rational reason that the certain stock would go up for a reason. Would make great return money when compared to simple hope of neutral investor.
Suppose the neutral person who are not emotional involved in the market but morely involved in hopes would get addict once they got long term results.
Emotion 4: addict
The addict is a person who can’t stop investing in the stock market, even if they lose in market.
The addiction happens because of the good results over and over again some times leads to very aggressive behavior in the stock market.
Let’s say if particular investor got good results on their first investing this leads to do this activity over and over again without realizing does the investor doing right or wrong.
Getting rational results and being rational is not easy things. It’s takes extraordinary discipline .
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Non market rule: #100126
Taking emotional decision or how you feel about certain security or stock is not a market rule. Because emotion are personal thing of one individuals but it doesn’t attached with market as function.
So action you take based on your emotions aren’t raisable in compliant. Therefore your completely responsible from your side. And If your investors and not comfortable or align investing with based on market rules please learn about how to regulate your investments under your control with use of Rule investing.