To The Moon

IS EMOTIONAL TRADING BAD?

How many of us buy the products that we desire based on emotions, functionality, branding, technical specifications?

For ladies, brands and quality are important. Quality such as skincare has to be effective coupled with a certain brands. Handbags of branded names are like a symbol of status and pride. These actually are targetted at the emotional level. Similiarly, when any sales person who wants to sell you your dream home must know your emotional needs by asking you questions. They targeted on your emotional needs of feel good, look good and a status of symbol to boost your ego. These are necessary to close the deal.

Now, how many of us also trade based on our emotions? Whether be it gut feel that the price will go up or down,or maybe the fear of more losses due to the falling knife of the dipping prices?Whatever our emotions level are, many of us do trade based on our emotions such as FOMO or MOMO or kiasu syndrome.  Like it or not, we do sometimes trade based on our emotions. Sometimes we follow others on what stocks to buy. Some follow Warren Buffet, others Elon Musk or Cathie Wood.  So remember, whether your emotions are positive or negative does affect your trading moods. Hence we need to be careful when we know ourselves better. If stocks are down, dont give up. Buy 2 more dips to leverage your price.  If goes up, sell some to get profit.

Happy Investing:)