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Daryl Liao, Fti

18 Jan 2020

Stocks

What's the best way to rationally invest without involving your emotions?

Looks like emotions is a big rock in investing and most people agree that it’s an issue. What would be the ways to better manage that aspect? I thought of books on behaviour, having a system.?

Discussion (17)

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Gabriel Tham

18 Jan 2020

Tag Team Member at Kenichi Tag Team

That takes experience. There is no special course or book that can help you control your emotions.

Starting out everyone has emotions but as time goes along, you build confidence, build up your conviction and will not be so much affected.

Also, your risk management is important. If you feel too stressed, cannot sleep well at night, then perhaps you need to analyse why.

Billy

18 Jan 2020

Development & Acquisitions Manager at Real Estate Private Equity

Hahaha I feel you Daryl, certainly not easy putting aside emotions when executing trades. Perhaps you can try setting Stop Loss and Take Profit prices and just stick to it. It may be tough on the first try but when you do it consistently, it becomes a norm and a habit

Use stoploss and take profit to make sure your emotions don't get involved. After inserting all the orders, don't look at it. Let your trades do their works

You can read gambling based book to improve your psychological state too.

Wong Ming Yao

16 Dec 2019

Product and Community Associate at 8VIC Global Pte Ltd

Hi Daryl,

Humans are an emotional creature that will amplify the effect of stock price rises during optimism and stock price crashes during pessimism.

Study the business in-depth, have conviction. Place your order to buy and sell before the market opens and focuses on your daily stuff. Stay away from market news!!!

After investing for many years, I can say up till today I am still learning. As cliche as it sounds,...

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