The worst part was that I never bought back into the company and missed as it zoomed from $8 to $28! Only a 350% gain I missed out on because I let fear and greed make my investment decision.
The point is whenever fear or greed is involved, you will lose.
Another big emotion that can prevent you from making good investment decisions is love; falling in love with the company you have an investment in. When the stock is falling due to the fundamentals and the business is no longer viable and it comes time to dump it, you need to be able to do it without blinking. If you can’t separate your love from the company then it will cost you big. Try to never get attached to any of your investments. You became an investor for one reason and one reason only...to make money.
You are not investing because you love the stock or because you enjoy the rush. You are doing it only to make money. Period. Never get emotionally attached to anything you invest in. Because if you do and can’t separate yourself from the stock then you’ll never make any money because the only way you’ll make any real money is when you actually “sell” the stock.
About The Author
You can get wealthy investing in the stock market as long as you can keep your head on straight and leave your emotions at the door. Franco Smeaux is the owner of Lux Investing, a premier resource for investing information. For more information, go to http://www.luxinvesting.com
