Controlling emotions is a necessary skill for successful investing from "summary" of Your Money and Your Brain by Jason Zweig
The ability to control emotions is a crucial aspect of successful investing. When it comes to managing money, rational decision-making is essential. However, emotions such as fear, greed, and overconfidence can cloud our judgment and lead to costly mistakes. In the world of investing, emotions can wreak havoc on our financial well-being. For example, when the market is booming, investors may feel a sense of euphoria and be tempted to chase high-flying stocks. This can lead to impulsive decisions that are not based on sound research or analysis. On the other hand, when the market is in a downturn, fear can take over, causing investors to panic and sell off their investments at a loss. Studies have shown that emotional decision-making can have a negative impact on investment performance. Investors who are unable to control their emotions tend t...
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