Perhaps the Most Important Area Of Investing - Psychology
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When you are striving for investment and financial excellence, you will have to do so by overcoming some tough obstacles. When you focus on the financial or investing problems you have, you are most likely going to generate feelings of guilt, anger or frustration in yourself. These feelings that arise are the silent investment account and financial killers; when investing you need to invest emotionless, which will help you focus on facts and not just gut feelings or instinct. Little investment or financial success is reached from such mental states, because they leave you feeling stuck and your “stuck” mode tends to persist and cause you to irrationally manage your finances and investments.

Anything you cannot accomplish is due to a stuck state. Any failure event in your past produces a psychological stop sign in front of you whenever you start in certain directions. This psychological stop sign has an impact that is as strong on you as the original failure, and creates internal conflicts when you attempt to accomplish a certain task, part of you wants to try and another part wants to retreat. You go back and forth, in a stuck state of mind, directionless and not creating any progress towards your goal, and this may also lead to procrastination.

This same stuck state of mind for an investor is devastating. One part of the investor says “I am losing money, I should cut my losses short, stick to my original plan and time frame, and look for the next investment" (Would be the wise decision) Another part says, “Stay in the investment, it should come back, maybe, and you don’t want to book a loss now.” (Wrong Choice)

Every time we put something off, some dream or goal, our feelings start to oscillate. We want to achieve our dream or goal, but we also want to avoid the pain that it takes to accomplish the task. The result is e-motion—a lack of motion outside and an intense motion inside of ourselves. This emotional feeling in investing is the fear of booking a loss because that would mean we would have to invest again after losing, and individual’s then get scared to make another investment because they remember the previous losses. The most successful investors and traders in the world will agree that it is essential to mute emotions, cut losses short, and to not ever fall into a false sense of security based on a feeling, such as "The market should come back" and altering your original investment plan or time frame just because you have a loss on one investment.

Simple Solutions:

When you are stuck, the more effort you put into trying to move forward, the worse off you become. One solution to this is always to relax and often move slightly in the direction that is opposite to what your instincts tell you, and try to falsify every idea that you have and always using facts when investing.

If you are stuck in your goal of becoming an excellent investor, try doing the opposite of your instincts. Understand that if your original plan was to be invested and profitable within 10 years, it is perfectly acceptable, and the wiser investment decision, to take a loss now and proceed to the next opportunity. You should put great efforts towards working on your emotions, and being able to control them when it comes to your investments and finances.

A second solution is to focus on what you want, and can achieve. When you focus on limitations, problems,, and the things you do not want to happen you feel the emotions of the stop sign or the limitation. When you focus on what you want to achieve, then you begin to see possibilities and new resources that open you up, and begin to improve upon your strengths.

Finally, the third solution is to focus on being what you want to be. If you want to be a great investor, don’t focus on what they have or even do, focus on their state of being, so you will really start investing like them. You need to think about, "What is it like to be a great, successful investor and really be in their shoes?"