Keeping sight of your long-term investment goals will help you keep your emotions in check as you encounter the invariable fluctuations in the investment markets. Fear due to losses and then subsequent confidence from gains can lead to unwise investment patterns and the paradoxical “buying high and selling low” mentality; the exact opposite of what you want. Don’t be swayed by short-term swings; keep the big picture in mind and be sure your current investments reflect this. An objective friend or financial advisor can provide support, encouragement and advice, so you come out ahead in the long run.
Read full article here: Emotional Investing: Why We Buy High and Sell Low
Carrie Rattle is a Principal at BehavioralCents.com, a website for women focused on mind and money behaviors. She has worked in the financial services industry for 20+ years and hopes to inspire women to better prepare themselves for financial independence.