1: irrational definition
2: irrationality Investors
3: irrational vs rational
4: key not be irrational
Opening information:
Irrational means unreasonable without any logic. Any person using any materials or things without any right reason then it’s called irrational.
Unreasonable activities always lead to wrong results. Doing the wrong results over and over again for different results which also an irrationality.
This article contains information about what is irrational, how irrational Investors are involved in the stock market, what is the difference between the irrational and rational, and finally what is the main key to not being irrational.
1: irrational definition
Jackson is one of the high school boys who graves or dreams of becoming one of the richest people on the planet.
While he was in high school, one of his friends Mike said that he played the casino yesterday night and won great money.
Which makes Jackson’s brains greedy to play the casino like Mike. But Jackson didn’t know Mike lost more than he won.
Jackson thought he wanted to play the casino only today. Because Jackson understands the casino contains the highest risk.
On the day Jackson lost nearly 14,000 dollars. At the time, this money is like 14 million dollars to Jackson. this makes Jackson a very bad day.
The next day Jackson knows, there is Chance he might lose the money again if he played anyway.
Before the loss of 14 thousand dollars, Jackson hardly got involved in casino activities.
Jackson again borrows the money 15,000 for debt to play the casino to win back the loosed amount of $14,000 anyway. Because 14,000 was the only money he had to survive the next year of college.
Again Jackson lost the 15,000 dollars, totally he lost $29,000. This makes Jackson get into high depression, pain, anxiety, and more.
By not hoping for a loss, again Jackson thought to borrow money to bet finally big amount and win a big amount without any reasonable way.
All because Jackson couldn’t able to cope with loss and its emotion of pain. When one of his best friends Marie knows that Jackson’s activities are completely wrong.
Marie stopped the activities of Jackson, making him get out of the unreasonable activities, but Jackson wasn’t able to get out of the casino because of high losses and big suffered.
This kind of unreasonable activity comes from emotional decisions this illogical behavior is called irrational. So now let’s have a look at how Investors behave irrationally in the stock market.
2: irrationality Investors
Beginning stock Investor who lacks 80% of the fundamental knowledge in stock investing.
Most likely involved in the irrational activities, because no one in the world would do the right things without doing the wrong things.
No Investors at the beginning understand the fundamentals of the stocks and the business behind the stocks to simply buy the one Securities.
Because when they try on a demo account, they won’t survive real emotions of fear and greed. So they would be on a real account.
The beginning Investor who started to bet on the rise and fall of the Securities of stocks would face the same and be involved in irrational behavior.
When they bet for raising of stocks, if they win, they might get greedy and bet more to earn more without any signal right reason.
At the same time when they won’t win it, they might not accept the loss and bet more to earn back the money they lost in the market.
If they lose more, they bet again and again bet more and more until they burn their whole trading account.
This activity is called not Investing but gambling money on the market without any reasonable guaranteed decision.
Moreover, most people misunderstand rational and irrational activities, so now let’s dive into the key difference between them.
3: irrational vs rational
There is no big difference between irrational and rational activities, rational means reasonable activities of logic. Which doing the things that make sense with the right reason.
Irrational means unreasonable activities or behavior by emotion, which means doing things that don’t make sense for no reason.
So the key difference between the rational and irrational is logical and illogical in any activities or behaviors. To make you more clear about the irrational let’s jump to know how not to be irrational in our life.
4: key not be irrational
Whenever involved in any of the activities which are more important and highly affect our health, love, or money. Then being irrational would completely impact life.
Understand everything fundamentally that you had involved in the activities of something and your behavior too, from the point to point take a right reasonable decision without influences of emotions.
Look for the right behavior which things produce the right outcome and take the right action for the right results.
Non-Market rule: #100116
Irrational is a concept of emotional decision involved in the stock market, which those decisions aren’t considered in the market rule, any determination you make is quite reasonable from your side.
If your investor and not comfortable or aligns investing with based on market rules please learn about how to regulate your investments under your control with the use of Rule investing.