How I Invest, Part 5: Avoid Emotional Decisions

(credit: YoTuT via Flickr)

(credit: YoTuT via Flickr)

All through my investing career, from the early days when I had good advice and lots of support, up until now — when I’m basically working on my own — I’ve made lots of mistakes.

Most of my mistakes are a direct result of my emotions taking over my reason — although at the time it feels like I’m protecting myself. Let me explain.

Part of my problem could be that I’ve never clearly defined what kind of an investor I am. If asked, I’d say that I’m a long-term investor — in it for the long haul. I pick a stock to buy believing that the company I choose to invest in has good growth potential, a steady pipeline of new products, an excellent financial base, and good management.

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