EQ & Investments: Bull, Bear Or HumanWritten by Brenda Smith
EQ & Investments: Bull, Bear Or Human
Markets are supposed to be rational, but with an economic system based on scarcity, how do investors behave with emotional intelligence? Experts in behavioral economics and emotional intelligence tell us we sell winners too soon and hold onto losers too long...
The ability to accept loss and feel regret we might have may be greatest obstacle to gaining wealth. Lacking EQ, investors are more likely to hold on to losers too long. Why? We avoid "negative" feelings, and rather than feel remorse, we want to move beyond it--into some action that will give us back what we lost. The losses that hit us hardest are first few dollars we lose, so additional losses aren't as painful. With this increased risk tolerance we tend to throw more good money after bad. We're emotionally wired to avoid pain. And, given a positive move or a negative one of same amount, there's more intensity on negative side.
We are more driven to avoid regret than to have pride. So while we hold losers, we also tend to sell winners too soon. Rather than wait for a small gain to grow, we tend to take our profits too soon. Why? Because every additional dollar of gain gives us less satisfaction.
Investors are also resist change--even beneficial change. The more choices we have, more we tend to stay in status quo. The EQ of investing would tell us --do your homework, pick carefully, determine a minimal downside loss and upside gain. The EQ challenge then, is self-managing emotions that come with taking rational action in a scarcity system.
How to live a happy and satisfied LifeWritten by Alina Ruigrok - www.love-sessions.com
In each day that passes by, we stand by and witness how our lives are being lived without full happiness and satisfaction we crave and need. Most people spend their time stressed out, worried and on a constant panic about what needs to be done for their futures, raising their children, wired up over work, school, along with everything else. Does this sound familiar? Well if it does, it is because so many people live with this style and pattern. When you can start living that fully happy and satisfied life?
The only way you can live a happy and satisfied life, is when you start doing things that make you happy and satisfied. Sure, it sounds easy, and can be easy if you just remember to make yourself one of your top priorities. Too many people neglect themselves, feeling that it would be selfish if they took any time out to focus on their own being. While it is good to take care of others and other important things going on in your life, it is mandatory that you never forget about yourself. Discover who you really are and what matters most to you. Living a great life does not just happen. It requires, planning and following those plans to a life that reflects who you truly are.
Most people avoid planning goals and dreams in their lives because they may have a fear of committing to it or failing. They feel that by officially writing it down, they would actually have to go through with pursuing it. This is where you need to rate importance of your life missions. What is most important to you? Is it losing a certain amount of weight? Getting your degree? Spending more time with your spouse or children? Whatever reason or reasons may be, just write all of them down. You may feel that making a mental note of your goals and dreams is enough, but you could very well be setting yourself up for disappointment and failure. By writing it down, you will become a visual witness of those goals. Try writing them in an organizer, with a little reminder written in each day.
Setting deadlines for these goals would be a great way to assure they will be accomplished. Avoid disappointment by setting realistic deadlines. For example, if you wanted to lose 10 pounds, do not give yourself a week to do so. You will only torture yourself and become depressed when week is over and see that you did not come even close to losing 10 pounds. In fact, you may give up losing weight altogether because of failure you experienced, simply because your deadline was unrealistic. Take some time everyday to look over your goals and remind yourself of how important they really are to you. Ask yourself why they are important to you too. Knowing that something is important is not enough. You must know reasons behind importance of dreams and goals you have, so that your mind can see it more clearly and understand exactly why it is so necessary to go through with your missions.