Investing and using your money to make more money is something that all of us try to do in one form or another. The desire to put our money to work for us and to gain more money in the process beats digging a hole and burying it in the back yard any day of the week. Investing can become an addition and one that destroys savings, families and lives every year. Is your investing becoming something bigger than life and threatening to take over your life?
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.
It is when we allow the emotion to dictate who we are and what we do that investing becomes a true addiction. We confuse the outcome of the investment with who we are as a human being. We feel like we are winners if everything plays out as we had predicted and our investment is successful. We are a winner because our choice was correct and it turned a profit. When an investment doesn't turn a profit and we find ourselves on the losing side of an investment it might be tempting to feel like we are a failure. Our investment was a failure so we are a loser. The emotions compound upon each other and soon we find ourselves in a situation wondering how we got there.
It can be tempting to check the status of your investments a couple of times a day. The childlike glee that we get when we see that an investment has improved or a stock has gone up in price brings a smile to our face. Of course, if you find yourself glued to the computer screen refreshing the page you might have a problem. If you mood and how you feel about yourself and those around you is affected by what you see then you need to check your emotions. Being nervous or overly concerned about an investment that you have researched and done your due diligence with is insanity. You have safeguards in place, such as stops and sell orders, which will take care of losing too much money and selling your stock or option when your predetermined price has been reached. Also, if you find yourself moving your stops and sell orders because you don't want to lose or because you are feeling greedy then you might have a problem.
Do you find yourself constantly looking for an edge or tips for hot stocks? This kind of behavior is similar to what goes on at a race track, wouldn't you agree? While searching for an good investment and being an educated investor is wise, looking for underground news or tips on what is going to happen in your chosen market are signs that something is wrong. That feverish feeling overcomes you and you simply must find a winner. You are willing to do anything. You subscribe to clubs and mailing lists to find that sure thing and you chase that rush.
There's a pretty good chance that you have a type of investment that you prefer. There is probably an area that you have some specialized knowledge in or a keen interest. You enjoy learning more about stock, bond, futures, foreign exchange or precious metals investing. While you might have always dreamed of branching out and learning about other forms of investing, jumping into an investment without having a good knowledge of the market because of emotions is a bad move. It can be tempting to take the advice of a good friend or business partner but check your motives. Are you investing because you have an interest in the investment or because you want to turn a quick buck? Look before you leap and understand the market unless you are fully prepared to lose the money that you're investing anyhow.
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.
It is when we allow the emotion to dictate who we are and what we do that investing becomes a true addiction. We confuse the outcome of the investment with who we are as a human being. We feel like we are winners if everything plays out as we had predicted and our investment is successful. We are a winner because our choice was correct and it turned a profit. When an investment doesn't turn a profit and we find ourselves on the losing side of an investment it might be tempting to feel like we are a failure. Our investment was a failure so we are a loser. The emotions compound upon each other and soon we find ourselves in a situation wondering how we got there.
It can be tempting to check the status of your investments a couple of times a day. The childlike glee that we get when we see that an investment has improved or a stock has gone up in price brings a smile to our face. Of course, if you find yourself glued to the computer screen refreshing the page you might have a problem. If you mood and how you feel about yourself and those around you is affected by what you see then you need to check your emotions. Being nervous or overly concerned about an investment that you have researched and done your due diligence with is insanity. You have safeguards in place, such as stops and sell orders, which will take care of losing too much money and selling your stock or option when your predetermined price has been reached. Also, if you find yourself moving your stops and sell orders because you don't want to lose or because you are feeling greedy then you might have a problem.
Do you find yourself constantly looking for an edge or tips for hot stocks? This kind of behavior is similar to what goes on at a race track, wouldn't you agree? While searching for an good investment and being an educated investor is wise, looking for underground news or tips on what is going to happen in your chosen market are signs that something is wrong. That feverish feeling overcomes you and you simply must find a winner. You are willing to do anything. You subscribe to clubs and mailing lists to find that sure thing and you chase that rush.
There's a pretty good chance that you have a type of investment that you prefer. There is probably an area that you have some specialized knowledge in or a keen interest. You enjoy learning more about stock, bond, futures, foreign exchange or precious metals investing. While you might have always dreamed of branching out and learning about other forms of investing, jumping into an investment without having a good knowledge of the market because of emotions is a bad move. It can be tempting to take the advice of a good friend or business partner but check your motives. Are you investing because you have an interest in the investment or because you want to turn a quick buck? Look before you leap and understand the market unless you are fully prepared to lose the money that you're investing anyhow.
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.
About the Author:
Visit http://ira-gold-rollover.com/ to learn more about investing and creating wealth. Discover where the world's truly wealthy are investing these days.
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