Title: How to Avoid Emotional Investing
Headings: How to Avoid Emotional Investing
How to Avoid Emotional Investing
Key Takeaways
Performance Chasing Can Cost You
Investor Behavior
Bull vs. Bear Markets
Bad Timing
Time-Tested Theory
Strategies to Take the Emotion Out of Investing
$6.2 Trillion
Frequently Asked Questions
Why are emotions so important to market psychology?
How can one measure the level of fear or greed in the stock market?
What are some trading strategies to keep emotions in check?
The Bottom Line

Content: Bear markets are always lurking around the corner and come with many of their own caveats that can be important for investors to follow and understand. 2 ﻿ In contrast to a bull market, sometimes financial markets can trend lower for many months or even years. Oftentimes bear markets evolve from an environment of rising interest rates that can spur risk-off trading and a transition from riskier investments like stocks to low-risk savings products. Bear markets can be difficult to navigate when investors see their equity holdings lose value while safe havens become more enticing due to their rising returns. During these times, it can be hard to choose between buying equities at market lows or buying into cash and interest-bearing products. Bad Timing
Emotional investing is often an exercise in bad market timing. Following the media can be a good way to detect when bull or bear markets are evolving because the daily stock market reports feed off the activity occurring through the day, which can at times create a buzz for investors. However, media reports can also be outdated, short-lived, or even non-sensical and based on rumors. At the end of the day, individual investors are accountable for their own trade decisions and therefore must be cautious when seeking to time market opportunities based on the latest headlines. Using rational and realistic thinking to understand when an investment may be in a development cycle is the key to evaluating interesting opportunities and resisting bad investing ideas.