Investing with emotion.. This is a well known diagram of

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joey68
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Investing with emotion..

This is a well known diagram of what we feel when investing with emotion
pLqf4Yt.jpg

You start out optimistic, get excited, share price skyrockets, you feel invincible thinking the share price will only go up up up, youre thinking of boats, cars, riches, no debt.. but you dont sell. the share price falls, you feel denial telling yourself its just a dip and will soon recover. Boats and fancy cars are still thoughts in your head. The price drops, you get fearful.. you realize you should have sold, you sell at a loss, youre now depressed, blaming others, blaming yourself... you find another stock, you get optimistic, get excited.. repeat over and over.

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There is a VERY HIGH degree of RISK involved in trading and investing. Only invest what you can afford to lose.
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