Every wealthy person on the face of this planet invests their money in one form or another. The desire to make your money grow instead of sit in a bank earning simple interest makes good sense. It is only when investing gets out of control that we wind up making poor investment decisions. Our emotions get the better of us and we wind up allowing investing to become more of an addition than a part of doing business or expanding our wealth.
The emotions that follow a successful investment are unlike any other that you may ever experience. Finding a solid investment vehicle and researching the investment. Looking at the market carefully and then coming up with a game plan is thrilling. You enter the market and invest your money and then this is where the real fun starts. You're in and your heart is beating in your chest. You watch with anticipation as it all plays out as you had hoped. You sell off the investment, collect your reward and the rush of emotions flood your body. There is nothing like it in the world and you're hooked. You want that feeling again and again but you know that this thrill is only part of the process of investing.
Allowing these emotions to grab hold of us and begin to rule us can happen very quickly if we're not careful. The mistake many of us make is to believe that if we make money in an investment then we are a winner. Likewise, it's tempting to feel that if an investment turns on us and we lose money then we are the opposite of a winner or a loser. This can lead us to chase those positive emotions and make poor decisions when it comes to investing in hope of not feeling like a loser. This is where the addiction begins.
It can be tempting to check the status of your investments a couple of times a day. The childlike glee that we get when we see that an investment has improved or a stock has gone up in price brings a smile to our face. Of course, if you find yourself glued to the computer screen refreshing the page you might have a problem. If you mood and how you feel about yourself and those around you is affected by what you see then you need to check your emotions. Being nervous or overly concerned about an investment that you have researched and done your due diligence with is insanity. You have safeguards in place, such as stops and sell orders, which will take care of losing too much money and selling your stock or option when your predetermined price has been reached. Also, if you find yourself moving your stops and sell orders because you don't want to lose or because you are feeling greedy then you might have a problem.
Going to extremes to find stock tips or advice about investments from dubious sources is another sign that you might be dealing with an addiction rather than a desire to make good investment decisions. Subscribing to stock tip newsletters that tell you which stocks or investments are primed to move on any given day is a sign that you're grasping at straws for investment advice. Often these newsletters themselves are the reason behind the jump in price and the owners of the newsletter have already put their money in place and are simply using people like you to pump the price up artificially. Steer clear of nameless, faceless advice. You are being used and this is not investment advice at all that you are receiving.
Most of us have one or two investment types that we prefer. We all have a knack for picking stocks, a feel for a certain currency pair or we enjoy investing in companies that we know a little bit about. If you find yourself chasing after profit and trying many different types of investments because someone told you that they know this particular investment is going to pay off then you might have a problem. Stick to investments that you enjoy learning about. Venturing off into uncharted territory when money is at stake is an unwise investment no matter where your information came from.
Often the bottom is reached and a good investor turned back realizes his or her folly as they figuratively lay in the gutter looking up at a loved one after they invested a good portion of money that they shouldn't have. Investing money that was put aside to pay bills or in a savings account for a child's education or for a special purpose is often the last straw. Lying to yourself or your spouse or partner about money is a sure sign that you have a problem. Withholding the truth is also just another form of lying and if you find yourself tempted to invest money that has not been set aside for investing then it's time to stop and take a careful look at yourself and your behavior. Be honest with yourself. Be honest with your spouse or partner. It might be the best thing that you ever did in your life and you very well might avoid total financial and emotional ruin if you have a problem.
Investing is a wonderful thing to do with your money. Over the long run, you will find that if you make intelligent choices based upon both facts and your feel for a market, you can do very well. The temptation to let your emotions get the better of you and force you to make decision that you otherwise might never make is a sign that something is wrong. Take this seriously. You obviously have a talent and a desire to make more of your life. Keep your emotions in check and don't let investing become an addiction for you.
The emotions that follow a successful investment are unlike any other that you may ever experience. Finding a solid investment vehicle and researching the investment. Looking at the market carefully and then coming up with a game plan is thrilling. You enter the market and invest your money and then this is where the real fun starts. You're in and your heart is beating in your chest. You watch with anticipation as it all plays out as you had hoped. You sell off the investment, collect your reward and the rush of emotions flood your body. There is nothing like it in the world and you're hooked. You want that feeling again and again but you know that this thrill is only part of the process of investing.
Allowing these emotions to grab hold of us and begin to rule us can happen very quickly if we're not careful. The mistake many of us make is to believe that if we make money in an investment then we are a winner. Likewise, it's tempting to feel that if an investment turns on us and we lose money then we are the opposite of a winner or a loser. This can lead us to chase those positive emotions and make poor decisions when it comes to investing in hope of not feeling like a loser. This is where the addiction begins.
It can be tempting to check the status of your investments a couple of times a day. The childlike glee that we get when we see that an investment has improved or a stock has gone up in price brings a smile to our face. Of course, if you find yourself glued to the computer screen refreshing the page you might have a problem. If you mood and how you feel about yourself and those around you is affected by what you see then you need to check your emotions. Being nervous or overly concerned about an investment that you have researched and done your due diligence with is insanity. You have safeguards in place, such as stops and sell orders, which will take care of losing too much money and selling your stock or option when your predetermined price has been reached. Also, if you find yourself moving your stops and sell orders because you don't want to lose or because you are feeling greedy then you might have a problem.
Going to extremes to find stock tips or advice about investments from dubious sources is another sign that you might be dealing with an addiction rather than a desire to make good investment decisions. Subscribing to stock tip newsletters that tell you which stocks or investments are primed to move on any given day is a sign that you're grasping at straws for investment advice. Often these newsletters themselves are the reason behind the jump in price and the owners of the newsletter have already put their money in place and are simply using people like you to pump the price up artificially. Steer clear of nameless, faceless advice. You are being used and this is not investment advice at all that you are receiving.
Most of us have one or two investment types that we prefer. We all have a knack for picking stocks, a feel for a certain currency pair or we enjoy investing in companies that we know a little bit about. If you find yourself chasing after profit and trying many different types of investments because someone told you that they know this particular investment is going to pay off then you might have a problem. Stick to investments that you enjoy learning about. Venturing off into uncharted territory when money is at stake is an unwise investment no matter where your information came from.
Often the bottom is reached and a good investor turned back realizes his or her folly as they figuratively lay in the gutter looking up at a loved one after they invested a good portion of money that they shouldn't have. Investing money that was put aside to pay bills or in a savings account for a child's education or for a special purpose is often the last straw. Lying to yourself or your spouse or partner about money is a sure sign that you have a problem. Withholding the truth is also just another form of lying and if you find yourself tempted to invest money that has not been set aside for investing then it's time to stop and take a careful look at yourself and your behavior. Be honest with yourself. Be honest with your spouse or partner. It might be the best thing that you ever did in your life and you very well might avoid total financial and emotional ruin if you have a problem.
Investing is a wonderful thing to do with your money. Over the long run, you will find that if you make intelligent choices based upon both facts and your feel for a market, you can do very well. The temptation to let your emotions get the better of you and force you to make decision that you otherwise might never make is a sign that something is wrong. Take this seriously. You obviously have a talent and a desire to make more of your life. Keep your emotions in check and don't let investing become an addiction for you.
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