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Emotional investing: what is it and how you can avoid it


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Published in Stocks and Investing on by MoneyWeek   Print publication without navigation

Are you an emotional investor? Your feelings could be damaging your long-term investments, but here's how to stay rational when the markets are turbulent.

Emotional investing refers to making investment decisions based on feelings rather than facts, often leading to poor financial outcomes. It can manifest as chasing trends, panic selling during market downturns, or holding onto losing investments due to attachment. To avoid emotional investing, one should develop a clear investment strategy, set long-term goals, and stick to them, even during market volatility. Diversifying investments, seeking advice from financial professionals, and regularly reviewing and adjusting the portfolio can also help mitigate emotional responses. By maintaining a disciplined approach and focusing on long-term objectives, investors can better navigate the emotional pitfalls of investing.

Read the Full MoneyWeek Article at:
[ https://www.msn.com/en-gb/money/other/emotional-investing-what-is-it-and-how-you-can-avoid-it/ar-AA1Gs6uS ]

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