As the market rised substantially over the past month, my friends who have been rather quiet and reluctant to talk about share investment sprang back to life. They started commenting, exclaiming ‘wow xxxx rised another 10 cents today! Ho Seh la!’, or lamenting ‘Shit! Yyyy fell 3% today’. It is strange as just 1 month ago they seem rather low-spirited and kept mum about their portfolio when casually asked: how did your investment go?
We are all human beings and we are wired to experience, or even welcome, emotions such as feeling happy or upset. However, emotions are not required for your investment. It clouds your judgement and affects your decision making. What we need in investment is rational mind, logical reasoning and mental composure.