Technical Analysis, Your financial goals

Contribution of Emotion in Investing

  • What's role of Emotion in Investing
  • Is Emotion part of Technical analysis?
  • How to control emotions while trading
Contribution of Emotion in Investing

EMOTIONS ARE YOUR WORST ENEMY IN THE STOCK MARKET

Contribution of Emotion in InvestingEmotion plays an important role in many aspects of life. Most of the decision we take depend on our emotional quotient, either directly or indirectly. It is no different in investing. Though it is impossible to keep emotion out of the equation, it is imperative to keep it under control. In fact, the success rate of our buying/selling decision in stock market depends unswervingly on this factor. There are two extremes, between which decision-making swings like a pendulum. Most of us react to these extremes. We are either too excited to calculate the risk involved in buying a particular stock or too depressed to identify the intrinsic value of a stock when it is down. It is always important to take a balanced and an informed decision. Striking the balance is an art. It needs to be practiced over time. There are scores of channels, magazines and hundreds of analysts who often occupy our mind and ride us through different sectors and stocks. It is this ride which takes us to the extremes.

Seldom do we think about who gives them ideas?

How much do they make out of their own recommendations?

What are their intentions?

Following them is very much equivalent to trying your luck at a casino. But then, how does one take a balanced and informed decision. Well, there are several tools & techniques to identify the movement of a stock. There are many ways to protect our investments from a severe fall. Understanding our risk capability, diversifying the portfolio, systematic investment plans and cost averaging are few of many strategies which help us to be in equilibrium at tough times. Above all, this is Technical Analysis. It is an ocean by itself. It is like reading the mind of millions of investors at a particular point in time and hence making an informed decision on buying/selling a stock.

One can learn it, but mastering it requires years of perseverance and experience. We at moneymunch.com have such stalwarts who have over the years guided many people to make informed decisions.

Get free important share market ideas on stocks & nifty tips chart setups, analysis for the upcoming session, and more by joining the below link: Stock Tips

Have you any questions/feedback about this article? Please leave your queries in the comment box for answers.

Disclaimer: The information provided on this website, including but not limited to stock, commodity, and forex trading tips, technical analysis, and research reports, is solely for educational and informational purposes. It should not be considered as financial advice or a recommendation to engage in any trading activity. Trading in stocks, commodities, and forex involves substantial risks, and you should carefully consider your financial situation and consult with a professional advisor before making any trading decisions. Moneymunch.com and its authors do not guarantee the accuracy, completeness, or reliability of the information provided, and shall not be held responsible for any losses or damages incurred as a result of using or relying on such information. Trading in the financial markets is subject to market risks, and past performance is not indicative of future results. By accessing and using this website, you acknowledge and agree to the terms of this disclaimer.

Previous ArticleNext Article
Vallimanalan is a banking and financial services professional with over nine years experience. As an AMFI certified mutual fund advisor he has spent years helping customers make considerable profits in mutual funds, insurance and sub-niche shares. He has carried out many projects to create awareness against possible fraudulent practices in banks and insurance companies. Currently, runs a ‘not for profit’ service community which addresses the grievances of customers of different BFSI entities. This community takes up issues on behalf of a customer and provides support till it is resolved, through all possible mechanism under legal channels. Topics of interest: Savings/Current account, Mutual funds, Insurance, Credit cards, fraud prevention, Sub-niche stocks, RBI Ombudsman, SEBI Scores

Write a Comment

Comment Policy: We love comments and appreciate the time that readers spend to share ideas and give feedback. However, all comments are manually moderated and those deemed to be spam or solely promotional will be deleted. Your email address will not be published. Required fields are marked *