Impact of emotional decision on your investment
It is important to keep you emotion aside while doing any investment. Importance of emotionless decision even increase when you have to deal with crypto market which is one of the most volatile market of the world.
Emotional decision lead you fear and panic during bearish market. As a result you may loose your hard earned money. Fear is actually your number one enemy. Fear reduce your decision marking as a result you fail to grab good opportunity.
Other common problem associated with emotional decision is greed. Greed in search of earning more profit may shrink your actual profit as crypto market moves in both ways. It is important to keep greed aside while doing investment.
One more drawback of emotional decision making is blindly following any crypto influencer. You can take guidance from influencer but is important to do your own research. Because at the end you are responsible for your profit and loss. We often seen people start buying coins when it price is appreciating . Just imagine people who bough BTC when it price was $68,000. Their investment has shrinked from 100 to 40%.
It is important to understand that invest on those projects which have good used case. There is no need to worry if the price of coins dip down. Good used case project has tendency to bounce back.
Another emotional decision making is showing overconfidence. People who shows overconfidence has more chance of loosing money. It is a fact that we all commit mistakes and overconfidence may lead to more mistake.
Now the question arises how to copeup the impact of emotional investment decision. There are few ways which may help you.
Improving your knowledge and skill. It is only possible if you do your own research. Your own research will help to build your confidence level. Never stop the learning process and always try learn new things on daily basis. It will help you to avoid emotional decision making. You can improve your research by learning from fellow user mistakes. We are lucky to have Hive and Leofinance community where talented user share their experience on regular basis. It is a good way to develop your skill.
In order to encounter greed, you must develop a habit of booking profit. Profit is useless if you don't grab it in time. Just imagine crypto market offers a huge profit which is not possible in any other market. Even a profit of 10% is enough for you. You can sort out this issue by setting a goal like what is your objective from investment. How much profit is acceptable to you. Goal setting must be realistic and achieve able.
Same way booking loss is important as it help you to save you from big loss. Never love your buying coins. Love of holding coins may give you huge loss.
Always diversify your portfolio. Never place all your eggs in one basket. It will help you to reduce your investment risk. What is your opinion my friends?
This is it for my today post. Wish you all a very happy, healthy and prosperous life ahead. Have a nice time .
We have learned this last year that we should never be too emotional in a market where we are not going to lose money. The value has completely disappeared and our lakhs of rupees have sunk.
Emotions is truly our anchors ⚓ in making of decisions, emotions influence our decision making greatly on daily basis, and the better way to handle that since we can't do without our emotions as a human the best part is to have requisite knowledge about the things we are to do.
Having knowledge on what to do help one to control his emotions while doing it, because the person will be working base on the amount of knowledge he/she has concerning that . So before one venture into any Business be it crypto, or not try to have requisite knowledge that will help to regulate your emotions, thanks you sir.
https://twitter.com/LovingGirlHive/status/1689202624388874240
Emotions cloud reason making it hard to see the actual reality of an investment. I think following the crowd or what influencers say is not the way to go with crypto. We must always do our own research first and put our emotions on check before making an investment.
https://twitter.com/lee19389/status/1689247139162177536
#hive #posh
Doing your own research is very essential and it makes one take informed decisions. Making informed decisions is the key to keep emotions out of the decision making process.