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How to control your emotions
So you can invest smarter
Welcome To The Long Wealth Newsletter (July 2nd). (est. 5 min read)
In today’s newsletter we will go over:
The Actionable Tip Of The Day
Emotional Investing
And much, much, more..
Actionable Tip Of The Day
Learn to understand the emotional cycle of investing.
Fear → Leads to selling assets during market downturns.
Overcome fear by focusing on the fundamentals rather than short-term market movements.
Greed → This can cause overconfidence and excessive risk-taking.
Set realistic profit targets and stick to your plan.
Overconfidence → Result in underestimating risks.
Maintain a humble approach and continually educate yourself about market dynamics.
Top Links Of The Week
Deep Dive
In todays newsletter, I want to dive into one of the most crucial skills you can develop in investing.
It’s often the most overlooked as well, but if you’re able to master this skill.
You will be 99% better than most investors.
It’s the skill of controlling your emotions.
The reason why this is so important is because the everyday investor makes decisions with their emotions.
If they see that the stock is going down, they panic sell.
If they see that the stock is going up, they buy into the hope
Both of these scenarios make you lose money.
If you look at the best investors like Warren Buffet or Charlie Munger, they use the masses emotions to their advantage.
When people are selling, they are buying more.
When people are buying, they are selling off their shares.
So the next time you’re investing, remember to control your emotions.
While everyone’s panic selling, you should probably be buying more (granted the stock is a fundamentally undervalued)
While everyone’s buying, you should probably be taking your profits.
Enjoy
Darold Trinh
Long Wealth Capital
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