Importance of Emotions aside during making investment decision
We often seen many investors failed because of their emotions. Emotion normally creates, hope, fear and greed. All these factors are not good for investment.
Hope comes in to play when people hold their asset for long term due to hope of gaining momentum. At the end they observe big dip. I personally bought Cub around $3 and now the price is around $0.015. I observed massive loss in my investment. I held the Cub from day 1 as I believe in this project. This reveals the importance of keeping emotion aside during marking investment decisions.
Dip in price creates fear which creates FUD as a result investors sell assets at cheap rates. Selling at cheap rates give permanent loss. It will damage your heard earned portfolio. There is no need to panic if the price of the asset goes down. Holding is key if the project has good use case.
Another important factor due to emotion is greed. We often see people buy assets when the price goes up. It is greed of earning extra profit which force investors to keep buying at higher rates and when the market fell it gives a big loss to such investors. Remember one point it is important to take profit on regular basis without any greed. Greed may convert your profit into loss. Market moves in both ways and it is unpredictable one bad news may badly hit the market so better to take profit before it becomes late. Same way, it is important to book loss some time. Keep your hope aside and never loose your hard earned asset by foolish emotion.
Investment require sound knowledge, skill and good strategy. These factors ease your investment. If you want to do business in crypto world you must keep emotion aside as it may give you a big loss. For crypto investors, it is important to do your own research beside understanding the market dynamics, price charts, trends etc in crypto world. what is your opinion my friends?
This is it for my today post. Wish you all a very happy, healthy and prosperous life ahead. Have a nice time .
Yes I am agree with you, it is very important for investor to do complete research beside understanding the market dynamics, price charts, trends etc. And yes greed play very important role in lose, in my opinion, maximum people lose in crypto due to greed, not because of the less knowledge.
You are absolutely right because I myself had put money into a similar project and now the price has gone down completely and my investments is completely gone. And the first rule of crypto is that when you sale something out of fear, you'll never get your investments back. First of all putting money into any place we should do all the search after that put our money. Thanks for sharing great knowledge with us.
You have said it all very wisely that...
No where it says you have to think from your heart or let your emotions play a role in investment decisions.
However every time we let that happen we are risking losing money.
So be safe and keep your emotions away from your investment decisions is the way to go.
Happy investing @zartisht
Putting emotions aside while staying focused on long-term investment goals can never go wrong.
Investing requires a long-term perspective. Emotions and sentiments can cause investors to become fixated on short-term market movements and lose sight of their long-term investment goals.
By staying focused on these goals, investors are more likely to make investment decisions that align with their financial objectives.
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