When it comes to your finances, emotions have their place. After
all, if you never worried about the future, you would probably
never buy life insurance, put money away for retirement or save for
your children's college education.
More often than not, however, emotions can get in the way of
sound financial decisions. It is human nature to become greedy
during good times and to panic during bad times. Because you cannot
turn off your emotions, try to understand how they can undermine
your investment decision making. Then, focus on setting limits that
will enable you to invest successfully.
No One is Immune
Emotions can make the key to successful investing — buying
low and selling high — especially difficult to pull off. Too
often, they can lead investors to sell precisely when they should
buy, and buy when they should sell. Investors, generally, are wired
to maximize gains and avoid losses. So when stocks are on a winning
streak, they may conclude the good times
