Stock Market Mindset
You might be as sharp as a tack, but how things go depends on what you do with yourself. Let's work on being a master of the markets. You can do it.
Try these...
Write down your response to the exercises below with pen and paper, not typed out on a device. Another useful exercise especially to start is to jot down whatever you think about the stock market?
Write down what you are good at.
The exercises have two purposes. One is to increase awareness and the other is to develop strategies designed to counter your weaknesses and take advantage of your strengths.
1. Where do you find yourself with the following?
a) Hate missing out on a gain.
b) Hate losing money.
Which of the two above weighs on your more? Rate yourself on a scale of 1-10 for each. How has this changed over time?
What is the type of trade you "get sucked into"? Is it related to buying, selling or are you trapped holding a position?
Have you ever written down what your reasoning was for a particular decision?
When are you most reactive or emotional? If you were to rate the degree of emotion on a scale of 1-10, where would you measure? Consider the following scenarios.
-
Stocks in the portfolio start going down.
-
Stocks are going higher but you don't own them.
-
You have stocks but there are other ones going up more.
-
You read something related to investment markets and you want to do something about it.
What else? What situation "gets your goat"?
On a scale of 1-10, how hard do you find investing? And, try this too: On a scale of 1-10, how hard do you think it should be? How different are your two answers?
As you work through the process awareness increases as you gather more information. Now ask yourself what type of trade strategy may be considered to deal with weaknesses as well as your strengths.
Write down what you are good at.
Talking it out can be very useful. Perhaps the questions aren't clear or you need a little encouragement. Let's try this; we can do a zoom call or a regular phone call or if you prefer by text. Please set it up by emailing info@craveinvestor.com. - Paul Thornton