Investing in financial markets could feel like an emotional rollercoaster, with highs and lows often driven by powerful emotions. In this video, we’ll explore the psychology behind investing. We’ll focus on three primary emotions that could impact decision-making: fear, greed, and regret. Understanding these emotions could help you make better financial choices and navigate market fluctuations confidently.
We’ll examine how fear may cause panic-selling during market dips and potentially lead to missed opportunities when the market recovers. Greed, on the other hand, could arise after consecutive gains, tempting you to overinvest in the pursuit of quick profits. This could lead to risky decisions. Regret, combined with hindsight bias, could prompt second-guessing and doubt, especially after a loss or missed opportunity.
To help you manage these emotions, we’ll share a few practical tips. These could include setting clear goals, diversifying your portfolio, and practicing patience. Recognising when emotions influence decisions and consulting a financial advisor could also help you maintain a balanced approach.
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