Every wealthy person on the face of this planet invests their money in one form or another. The desire to make your money grow instead of sit in a bank earning simple interest makes good sense. It is only when investing gets out of control that we wind up making poor investment decisions. Our emotions get the better of us and we wind up allowing investing to become more of an addition than a part of doing business or expanding our wealth.
All of us love when an investment comes together. We have all experienced that rush of positive emotions when we find an investment, buy in, see our money grown and then reap the rewards. You research your investment, nervously watch it grow day by day and then get out at the perfect time. You have made money literally out of thin air and you feel like a king. You feel invincible and powerful. With grace and confidence you have earned money wisely through investing it.
Allowing these emotions to grab hold of us and begin to rule us can happen very quickly if we're not careful. The mistake many of us make is to believe that if we make money in an investment then we are a winner. Likewise, it's tempting to feel that if an investment turns on us and we lose money then we are the opposite of a winner or a loser. This can lead us to chase those positive emotions and make poor decisions when it comes to investing in hope of not feeling like a loser. This is where the addiction begins.
It's tempting to check the status of your investments. You're curious. You want to see how things are going. You want to know if you made the right choice on an investment. On the other hand, if you find yourself checking your accounts and your mood changes depending upon if your investment has improved or not then you might have a problem. Once you have committed to the investment, set everything in place as far as sell order and stops then there is no need to check on your investment more than once or twice a day. Your time could be better spend doing something else or even researching other investments that might interest you.
Going to extremes to find stock tips or advice about investments from dubious sources is another sign that you might be dealing with an addiction rather than a desire to make good investment decisions. Subscribing to stock tip newsletters that tell you which stocks or investments are primed to move on any given day is a sign that you're grasping at straws for investment advice. Often these newsletters themselves are the reason behind the jump in price and the owners of the newsletter have already put their money in place and are simply using people like you to pump the price up artificially. Steer clear of nameless, faceless advice. You are being used and this is not investment advice at all that you are receiving.
While stepping outside the box and stretching ourselves a little bit can be a good move when it comes to educating ourselves about investing, buying into an investment that you have no interest in can be a bad move. Taking some investment advice from a friend or following through on a tip from someone on an investment vehicle that you know nothing about is about as close to blind faith as it gets. If you've never invested in stock and you know nothing about stock investing then stay out of stocks until you understand the process. Likewise, if you have no idea who investing in foreign exchange currencies works, put off investing any money in this investment until you are able to educate yourself. Jumping into an investment without research and confidence in yourself is a sign that you have a problem.
Often the bottom is reached and a good investor turned back realizes his or her folly as they figuratively lay in the gutter looking up at a loved one after they invested a good portion of money that they shouldn't have. Investing money that was put aside to pay bills or in a savings account for a child's education or for a special purpose is often the last straw. Lying to yourself or your spouse or partner about money is a sure sign that you have a problem. Withholding the truth is also just another form of lying and if you find yourself tempted to invest money that has not been set aside for investing then it's time to stop and take a careful look at yourself and your behavior. Be honest with yourself. Be honest with your spouse or partner. It might be the best thing that you ever did in your life and you very well might avoid total financial and emotional ruin if you have a problem.
If these words have made you feel even the slightest bit uncomfortable then it is time that you sat down and took a look at what you're doing. Investing can be fun and thrilling. A lot of money has been earned by wise investors over the years. Making good choices and not allowing yourself to be ruled by your emotions is key to being a successful investor. You will have good days and bad days but the wise investor knows how to remove their emotions from their investments. They also know when they're having a problem and when they need to get a grip on reality so they can get back to investing instead of chasing after money and the thrill of making money.
All of us love when an investment comes together. We have all experienced that rush of positive emotions when we find an investment, buy in, see our money grown and then reap the rewards. You research your investment, nervously watch it grow day by day and then get out at the perfect time. You have made money literally out of thin air and you feel like a king. You feel invincible and powerful. With grace and confidence you have earned money wisely through investing it.
Allowing these emotions to grab hold of us and begin to rule us can happen very quickly if we're not careful. The mistake many of us make is to believe that if we make money in an investment then we are a winner. Likewise, it's tempting to feel that if an investment turns on us and we lose money then we are the opposite of a winner or a loser. This can lead us to chase those positive emotions and make poor decisions when it comes to investing in hope of not feeling like a loser. This is where the addiction begins.
It's tempting to check the status of your investments. You're curious. You want to see how things are going. You want to know if you made the right choice on an investment. On the other hand, if you find yourself checking your accounts and your mood changes depending upon if your investment has improved or not then you might have a problem. Once you have committed to the investment, set everything in place as far as sell order and stops then there is no need to check on your investment more than once or twice a day. Your time could be better spend doing something else or even researching other investments that might interest you.
Going to extremes to find stock tips or advice about investments from dubious sources is another sign that you might be dealing with an addiction rather than a desire to make good investment decisions. Subscribing to stock tip newsletters that tell you which stocks or investments are primed to move on any given day is a sign that you're grasping at straws for investment advice. Often these newsletters themselves are the reason behind the jump in price and the owners of the newsletter have already put their money in place and are simply using people like you to pump the price up artificially. Steer clear of nameless, faceless advice. You are being used and this is not investment advice at all that you are receiving.
While stepping outside the box and stretching ourselves a little bit can be a good move when it comes to educating ourselves about investing, buying into an investment that you have no interest in can be a bad move. Taking some investment advice from a friend or following through on a tip from someone on an investment vehicle that you know nothing about is about as close to blind faith as it gets. If you've never invested in stock and you know nothing about stock investing then stay out of stocks until you understand the process. Likewise, if you have no idea who investing in foreign exchange currencies works, put off investing any money in this investment until you are able to educate yourself. Jumping into an investment without research and confidence in yourself is a sign that you have a problem.
Often the bottom is reached and a good investor turned back realizes his or her folly as they figuratively lay in the gutter looking up at a loved one after they invested a good portion of money that they shouldn't have. Investing money that was put aside to pay bills or in a savings account for a child's education or for a special purpose is often the last straw. Lying to yourself or your spouse or partner about money is a sure sign that you have a problem. Withholding the truth is also just another form of lying and if you find yourself tempted to invest money that has not been set aside for investing then it's time to stop and take a careful look at yourself and your behavior. Be honest with yourself. Be honest with your spouse or partner. It might be the best thing that you ever did in your life and you very well might avoid total financial and emotional ruin if you have a problem.
If these words have made you feel even the slightest bit uncomfortable then it is time that you sat down and took a look at what you're doing. Investing can be fun and thrilling. A lot of money has been earned by wise investors over the years. Making good choices and not allowing yourself to be ruled by your emotions is key to being a successful investor. You will have good days and bad days but the wise investor knows how to remove their emotions from their investments. They also know when they're having a problem and when they need to get a grip on reality so they can get back to investing instead of chasing after money and the thrill of making money.
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