For Investing Success, Tune Out Emotional Noise
- DON’T : Get attached to your stocks. Maybe you inherited part of your portfolio. Maybe you feel loyal to a particular company or its products from using them in your daily life. Maybe you hand-picked your stocks based on intuition and the hype in the headlines. Unfortunately, emotional attachment clouds your judgment when it comes to designing your investment strategy and making financial decisions that will uphold it best.
- DO : Stay rational when making your financial plan. I see it all the time: the most common mistake people make is investing with emotion. You should create a personalized investment strategy that is a good match for your situation and your long-term objectives, and then stick to it. Detaching your emotions from the equation will help you to clearly identify the most advantageous ways to pursue your financial goals.