PauloGabrielSa
๐—œ๐—ป๐˜ƒ๐—ฒ๐˜€๐˜ ๐˜„๐—ถ๐˜๐—ต ๐˜๐—ต๐—ฒ ๐Ÿง  ๐—ป๐—ผ๐˜ ๐˜„๐—ถ๐˜๐—ต ๐˜๐—ต๐—ฒ โค๏ธ This is a throwback to an article I wrote back in 2021 for eToro. You can read the full version here: www.etoro.com/news-and-analysis/copytrader/investing-psychology-investing-with-your-brain/ Everyone at some point has panic sold or FOMO bought some stock or crypto because it will "fall to 0" or because it's "going to the MOON". Later you realize that your actions are totally off of your initial strategy and you regret that, at least when it goes wrong. Especially now that the market is uncertain, let's revisit some tips to avoid emotional investing: ๐Ÿญ. ๐—™๐—ผ๐—ฐ๐˜‚๐˜€ ๐—ผ๐—ป ๐˜๐—ต๐—ฒ ๐˜€๐˜๐—ฟ๐—ฎ๐˜๐—ฒ๐—ด๐˜†: When you begin investing, itโ€™s important to create an investment plan followed by a time-horizon goal. If you have the patience, a long-term vision is an optimal way to invest and easiest to stick with, and it prevents you from getting caught up in short-term traps. ๐Ÿฎ. ๐—œ๐—ด๐—ป๐—ผ๐—ฟ๐—ฒ ๐˜๐—ต๐—ฒ ๐—บ๐—ฒ๐—ฑ๐—ถ๐—ฎ: Donโ€™t follow the crowd, and stop watching what the media is saying. They tend to over-exaggerate, especially when the market is correcting or going down. Instead, look for other experienced investorsโ€™ opinions and always look for a bullish and bearish view on the situation. ๐Ÿฏ. ๐——๐—ถ๐˜ƒ๐—ฒ๐—ฟ๐˜€๐—ถ๐—ณ๐—ถ๐—ฐ๐—ฎ๐˜๐—ถ๐—ผ๐—ป ๐—ถ๐˜€ ๐—ถ๐—บ๐—ฝ๐—ผ๐—ฟ๐˜๐—ฎ๐—ป๐˜: Diversification will help you get through volatile times. Of course, there will be times when the entire market is going down, but the more frequent situation is when some sectors will be down and others wonโ€™t, which offsets the losses for the losers. Therefore, diversify your portfolio by investing in different types of assets and sectors (i.e. Stocks, Cryptos, ETFโ€™s, Popular Investors). ๐Ÿฐ. ๐——๐—ผ๐—น๐—น๐—ฎ๐—ฟ-๐—ฐ๐—ผ๐˜€๐˜ ๐—ฎ๐˜ƒ๐—ฒ๐—ฟ๐—ฎ๐—ด๐—ถ๐—ป๐—ด: This is the most underrated strategy that can produce positive results regardless of the market condition, especially in a downward trending market. Using DCA (dollar-cost averaging) enables you to buy shares at lower prices and, therefore, as the name says, you will be averaging your buying price. This means that once the market recovers, you will recover at a faster pace. When the market falls, view it as an opportunity to dollar-cost average your investment positions. ๐Ÿฑ. ๐—๐˜‚๐˜€๐˜ ๐—ฏ๐—ฒ ๐—ฝ๐—ฎ๐˜๐—ถ๐—ฒ๐—ป๐˜: You already know the saying โ€œInvesting is a marathon, not a sprintโ€, but really, this is true. The more you try to get rich quick, the greater the chance you will lose your money. Usually, the sprinter is emotional, so being consistent over time is extremely difficult. However, being an emotionally controlled marathoner will generate for you consistent and long-term returns. $NSDQ100 $SPX500 $BTC
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