🎯 When do we easily lose our alertness in investing?
When do you feel extreme excitement, buy without looking at the price, and even borrow to dive into the market? That is precisely the moment of highest risk in investing.
Why?
1 FOMO psychology: When the market is heating up, everyone around is flaunting their profits, you feel the urge not to miss out. At this time, emotions overwhelm reason, leading to hasty decisions.
2. Overconfidence: "Is it this easy to get rich, why not give it a try?"
– This is a common saying when you have reaped a few small successes. You start to think that you can't lose, and it is at that moment that the market may turn around.
3 Willingness to take on risk: The moment you borrow to invest is when you have placed all your trust in a rosy outlook. But in reality, the market is always full of unexpected shocks.
🎯 Valuable lessons:
Be cautious when everything seems too perfect: When the market is only "green", take a step back and ask yourself: "What would happen if everything suddenly reversed?"
✔ Capital management is key: Never invest all your money, and absolutely do not borrow if you cannot handle the risk.
✔ Keep a cool head: The most successful investors are those who can control their emotions, not getting overly excited when prices rise and not panicking when prices fall.
Have you ever found yourself in a state of "extreme excitement" when investing? Please share your experience in the comments below!