The Ultimate guide to Getting over depression, mood swings & bad moods Based on psychology
If you are wondering why you feel bad each time you check your stock prices and find them unchanged then know that the problem is not with the stock prices but its rather with your impatience.
Impatient investors usually check the value of their portfolio every now an then. They calculate unrealized gains each few hours and as a result they get disappointed all the time.
Some investors go beyond that point and become price addicts. They depend on the change in the price to determine their mood and so they keep checking their portfolio each now and then.
If that was your case, then each time you feel like wanting to check the value of your portfolio ask yourself the questions "did I check it any time soon? Will checking it now change anything?"
And if you found that checking the value won’t be useful then don’t do it because you will just buy yourself pain!!
other than the pain there is a big danger that may result from such behavior. your mood may affect your investment decision. You may sell your good stock because its price didn't go up just to find it surging few weeks later. know that unless you become a disciplined investor you will both feel bad and lose your money.
This bad habit doesn't stop at the stock market. Many people have developed the bad habit of checking for certain news every now and then only to feel bad as a result.
Its so common for a person who is waiting for an important mail to keep checking his mail every few minutes and as a result he feels disappointed.
Stop this bad habit and you will feel better.
The change in price reflects the opinion of the traders and not the real value of the stock. Most investors lose money in the stock market and as a result you should never depend on their opinion!
Most People move like a herd, when they see a stock going up they quickly buy more of it without caring to understand what's going on. On the other hand when they see a stock going down they quickly drop it before they try to know more.
In all cases those people lose money and the ones who make real money are the investors who avoid the mistakes most people do.
Warren buffet, one of the most famous investors, said that he would be happy to own the stock he bought even if the stock market was closed for 10 years. The man understood that price changes make no sense as long as they don't reflect the real performance of the underlying company.
Farouk is not only holding several degrees in psychology but he is also an MBA holder, a stock market investor and an entrepreneur. The information you are reading now can dramatically increase your chance of increasing your wealth and becoming reach. If you have any doubts regarding these statements then read what other visitors say about 2knowmyself.com.The book How I did it was written by Farouk and it explains how he managed to make a website that generates thousands of dollars/month in less than 2 years without paying a penny.
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