Stock Market Guide - Will You Be A Dumb Dog Investor

Stock Market Guide - Will You Be A Dumb Dog Investor

Nothing could possibly be rational about attempting to trade exactly the same stock or market repeatedly even though you continue to throw money away in it. In reality, it is doggy dumb.

This is exactly what quite a few investors do. All they know is a single market, gold mining stocks as an example, and even though they've already lost money trading within this sector, or have overlooked gains in other sectors. They just consistently put money into the same stock or market as the losses accumulate.

Now relax you gold bugs who troll my video clips. Such things happen not only with gold or gold mining stocks, but will occur in almost any stock, sector, industry, or market.

Many people prefer to assign human feelings to non-human items. We have even created a word for the technique of assigning human feelings to every thing: anthropomorphism.

You will listen to investors declare things like: she is my favorite stock, or I love this little one.

Never ever give human attributes or emotions to a stock and become too emotionally involved with it.

Always check yourself and ask, am I getting too emotionally involved with this stock? Will I continue to keep purchasing this stock because it truly is making me money or have I created an unhealthy attachment to this stock influenced by assigning emotions to the stock of like, love, baby, and many others.

As the old clich goes, don't try to beat a dead horse. Let your losers go as fast as you can and get over it.

There's a viral video clip out there that shows a pet dog in Japan still protecting his home even though the home is totally gone and just the cement foundation remains. This is an example for the way trying to make money in the same stock again and again causes you to look stupid and can seriously hurt your trading account.

Think you're a foolish dog trader?

This really is how numerous amateur investors are. Many people won't move on to a better stock or market simply because they've formed emotional attachments to a stock or market. I've seen investors keep hold of a stock that has gone completely worthless and has become an empty shell simply because they refuse to let go of their dream that this stock, their baby, would definitely turn them into a millionaire.

Even seasoned investors can get into this snare simply by analyzing a company's press releases. Bear in mind, press releases aren't news. Even professional traders sometimes neglect this and get psychologically attached to a story stock. But it is not only fundamental analysis that could get a trader falling in love with a stock. Technical analysts may also get caught in this snare through getting attached to their most favorite stock chart pattern that they absolutely love. As the trade goes against them, they hold on to long simply because they've established an attachment to a pattern on the stock.

Developing emotional attachments to things is a component of being human. Constantly ask yourself if you're forming an unhealthy psychological attachment to a stock or market. Always try to keep your emotions under control when trading. Imagine Spock on Star Trek. Now this is a fictional temperament which would make for a great stock trader.

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