Emotion is the biggest factor that governs an investor's decision, not technology or technology, but emotion, if you don't get good control of your emotions and keep your sanity in investment, then lead to the wrong decisions in investment.
Real investors all know that the up and down market is mainly due to two emotional factors: fear and greed.
Ordinary investors invest based on feeling. But successful people always know how to control their emotions well.
They do not allow the words of financial experts or consultants to influence their choices and investment methods.
Successful investors often have a neutral reaction whether they are or lose. They do not give up their investment strategy because of a few failures and are not too confident when being the winner. No matter what the market is like, they always think the chance of winning is 50-50.
8. Having a clear investment strategy
Each investor must develop a clear investment strategy to stick with it. Some people succeed with the strategy of portfolio diversification.
Others like Warren Buffett just like to invest in a few stocks. "Diversification is a way to combat what I don't know," he said. But it doesn't make much sense to those who know what they're doing. ”
J. Paul Getty - another talented investor, said: "Buy when everyone is selling and sell when everyone is buying. This is not just a catchy slogan, but it is also essential for a successful investment. ”