Investment Management: The Emotions of Investing

This three part series looks at how investing can be an emotional business. After all, an investor’s financial future is at stake. Most investors, however, would be wise to check their emotions at the door prior to logging on to view, and dare I say trade, their accounts. Let’s look at some examples of how “emotional investing” can cost you your hard earned dollars.

  1. The Return Chaser – Chasing the hot mutual fund or segment of the market rarely works…
  2. The Fearful Investor – Investing is serious business. An investor is wise to be concerned about losses in his portfolio. How you think about and manage this risk will play a significant role in your financial success…
  3. The Effects of Greed – Just as fear can drive equity values in a bear market, greed plays a role when a rising stock market defies all laws of gravity…

This article is for educational purposes only and is not a personal recomendation of any strategy or product. You should not make any changes to your financial situation based only on this article. It is advised that you consult a qualified advisor and tax professional to evaluate your situation before making any changes to your finances.