Keep calm no matter what
There are 4 general emotional states when investing in stocks, they are Greed, Optimism, Pessimism, and fear. These four emotional state affects our perception in terms of how well our stocks are performing. Usually, when the market is less volatile, our emotional states will alternate between optimism and pessimism as the daily fluctuations do not deviate too much. However, in recent weeks, the markets have become more volatile due to the US elections, this has caused higher trade volumes and increases volatility. As such, stock prices and markets have gone beyond the usual boundaries of optimism and pessimism into greed and fear territories, causing investors to feel overwhelmed and indecisive. In response to that, this week’s post will be centered on the emotional state of investors and how should we self-evaluate our own emotional state to prevent making impulsive decisions.
