Three basic emotions: fear, greed, and frustration or impatience negatively affect investment decisions. You can lose a lot of money if you let your emotions dictate your investments.
It is normal to feel this urge, it is common to most people
We are familiar with this feeling from our childhood, whether it’s soccer in the street or chips, chips, jams or any other similar childhood fun.Instead of wanting to get rich quick and solve all your problems, it’s just excitement.
This is what is related to the desire to win in casinos.How to become rich quickly without any effort and lead a beautiful and peaceful life? The desire to win money and the desire to win back are identical, but people who want to win back do not think about it.
“I’ll win back and quit the casino”.The difference lies in the different stages of addiction.
In the initial stages, the person wants to PLAY.
In the more serious stages, they want to WIN.
The law of gambling says that “to increase your winnings, you have to increase your stakes, and increased stakes lead to increased losses”.
Gambling often occurs in people, mainly because of the emotional high they experience as a result of the activity and excitement in the financial markets.
When emotions control a person, he or she becomes a gambler and can almost never succeed in multiple trades, ultimately resulting in catastrophic financial losses.
In the initial stages, the person wants to PLAY.
In the more serious stages, they want to WIN.
The law of gambling says that “to increase your winnings, you have to increase your stakes, and increased stakes lead to increased losses”.
Gambling often occurs in people, mainly because of the emotional high they experience as a result of the activity and excitement in the financial markets.
When emotions control a person, he or she becomes a gambler and can almost never succeed in multiple trades, ultimately resulting in catastrophic financial losses.
Ramsey Dave, an American financial advisor and author of many best-selling books, said that personal finance is a behavioral problem, not a mathematical one. Investors often have temper tantrums and this can lead to serious consequences.
To avoid affective investing, you need to make an effort and understand the concept of behavioral finance, which encompasses the emotional side of investing.
Identifying the ulterior motives that drive our actions can help us make decisions in the future.
Avoiding emotional investing starts with changing the way you think.
While emotions can help you in your personal life, they cannot influence your investment decisions.
Before you make any investment decisions, keep yourself in check.
Your profits are suffering emotionally.
You can control your emotions so you can make smart investment decisions without fear, apprehension or greed.
Some people will forgo the benefits of owning stocks or other marketable securities if gambling is associated with investing. Misconceptions about investing can significantly limit your ability to accumulate wealth.