Managing emotions is key to financial success from "summary" of Your Money and Your Brain by Jason Zweig
The link between emotions and money is a powerful force in our lives. How we feel about money deeply influences how we handle it. When we experience fear or greed, our financial decisions can be clouded by these emotions. Fear can lead us to sell investments at the worst possible moment, locking in losses that might have been temporary. Greed can tempt us to take excessive risks in pursuit of outsized gains, only to suffer devastating losses. The key to successful investing lies not in mastering complex mathematical formulas or predicting the future, but in understanding and managing our emotions. By being aware of how our emotions can impact our financial decisions, we can take steps to counteract their negative effects. This requires developing self-control, discipli...
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