Investing and emotions… they don’t mix.
In this summers issue of the Business Pulse Magazine I wrote a feature explaining in part my Strategic Growth Opportunities model and how it is designs to take advantage of investors emotions. Read the excerpt below or click image to find the full article.
Do you wish you’d bought a house four or five years ago when it seemed like the well was poisoned? And looking back on it, do you realize it was a great time to take advantage of lower prices? This happens all too often, and it’s all because emotions get in the way.
Frankly this scenario is humanly predictable.
Emotions are not created equal, and negative emotions have stronger influences on us in financial investments than positive emotions. When we are faced with the possibility of missing out on an opportunity or suffering a loss, we tend to make quick and often irrational decisions.
These emotionally driven actions often bring regret later. Pausing for a breath is always a good idea when you feel emotionally-charged. You might find out that the idea that just sounded so great might actually become the worst action you could take.
Why? Because when you think it’s time to buy, you’re already too late, and then you’re running scared and selling low. Your investment portfolio should equal the sum of many moving parts and different strategies, and one way to capitalize on our human flaw is by adding a contrarian methodology that prefers to buy stocks when most people are selling – and vice versa.
Learn more about our contrarian investment model; Strategic Growth Opportunities
Read the full article below or click here