The Variation of Market Beyond the Investing Power
When it comes to trading and investing, the most important analysis which we forget to do is our own emotional analysis.
We make sure to look at the mood of the markets and what are the sentiments driving the market. However, the most important aspect which we forget is how are our sentiments and emotions. Your emotions are the greatest assets and have the potential to turn any of your losses into a sizeable profit. On the other hand, these emotions have the potential to work against you as well and can drive you towards a disastrous loss.
Our emotions when it comes to finance, it is a lot more than just greed and fear. Rather than extreme contrast, our emotions are more like the ancient Chinese symbol “Yin and Yang” which is a philosophical concept explaining how the two completely contrary forces are actually interconnected and interdependent on each other. With extreme greed, comes a little fear and with extreme fear, comes a little greed. Every trader needs a healthy balance of both to win against the odds.
This goes for any work you do, make it a preliminary condition to do your emotional analysis and then take decisions. This in turn will protect you from any downside and rash decisions. It is completely okay to take breaks from your work and reflect on yourself. It is absolutely okay to give yourself some more time than you actually think you need. The long term benefits are much more valuable than you can envision.
