You are viewing a single comment's thread from:
RE: How To Profit From People's Tendency to OVER REACT! | Investing Psychology Series - Episode 3.
As always, great article @investingtips. I am really enjoying this psychology series.
A couple of my thoughts:
- In-depth research is key to making sure emotions don't get in the way. Numbers and facts will help keep emotions in place!
- Know what you can invest. In rare occasions markets can remain irrational longer than you can remain solvent.
- Understanding of your individual risk tolerance is essential before investing. Although some people simply seem to be able to "handle" difficult market conditions better, if markets are keeping you awake at night you are overexposed!
Thanks man. I agree with all your points and here is my thoughts on each of them:
This is a great point, if you do your research and you KNOW the technology behind the crypto is innovative and the fundamentals are solid, rather than just relying on other people simply saying that they are, you will be in a much better position emotionally.
My thoughts are that, and they pretty much echo yours, only the people who put in amounts of money that they truly can lose without it affecting their lifestyle or ability to keep the electricity on will be able to weather longer term storms that have happened in the past in the crypto scene and i'm sure have happened in every type of market. Investing is for the long-term, not a get rich quick scheme!
Yeah man some people just don't have the nerve to withstand such fluctuations in price and volatility, for anyone who isn't sure whether they can, certainly don't invest in the crypto scene!