Just DON’T do it! It is emotional investing that keeps people up at night, that wastes time and energy lost in worry, that takes the joy/fun out of investing.
Examples of emotional investing may go something like this – “I know it can’t go any lower, so I will just hold on” (unless the value is 0, it can go lower), “this stock has made me a lot of money in the past. I know that it will come back up.” (past – is the operative word here), “my uncle said it was a good stock, so I just won’t look at it until it goes back up.” (kind of dark down there?)
When you find that you are trying to “convince” yourself one way or the other, it is probably emotional investing or trading. If you sound like you have just consulted with your crystal ball, this is emotional investing. Take the emotion out and put your actions into measurable steps such as a pre-determined stop loss percentage that you will NEVER move lower. Trust me on this.
Imagine the freedom from worry that you could have enjoyed if only you understood why emotional investing is so detrimental to your consistent investing success.