Understanding the human dynamic (emotions) is so valuable in your own investing for these two reasons:
- You will have guidelines to help you avoid the most common mistakes.
- You will be able to recognise other people's mistakes in time to profit from them.
- You need a certain kind of temperament.
- The road is always bumpy and knowing which is the right path to take is often counterintuitive.
- The stock market's constant gyrations can be unsettling to investors and make them act in irrational ways.
- You need to be on the lookout for these emotions and be prepared to act sensibly even when instincts may strongly call for the opposite behaviour.
- The future rewards focus investing significantly enough to warrant our strong effort.