If you own stocks, it was a rough week. It certainly was for me.
2 stocks I have been holding for a small short term profit did horribly.
1 stock has posted a measly 0.36% gain since I bought it earlier this week. The other has dropped 14.15% since I got in on it about a week ago.
If you read my post about my rules for buying a stock, then you should know I am not worried. I am, however, frustrated.
The markets are going through a choppy patch at the moment. Sure there are stocks making big gains, but those are very risky buys and I have learned the hard way to stay away from them.
That doesn’t mean I’m not tempted.
Just this afternoon, I found myself looking at these terrible numbers my positions were doing and contemplated trying to swoop in on one gainer before the weekend.
Thankfully, I closed my MacBook and walked away until the thought passed.
It’s easy to get caught up in the numbers and your goals and do something dumb.
Emotions and Money Don’t Mix
If I’ve learned anything about how to use money, it’s that you can’t let emotions lead you.
Anytime I have made an emotional purchase of anything (a new gadget, a stock, a service, or even a meal,) it turned out later not to be the best decision.
One of my biggest strengths and flaws as a human being is remaining optimistic after losses. I always believe “This time will be different.” The reality is: Most of the time it wasn’t different.
I have made mistake after mistake with this thinking and I’m changing my approach.
Instead of being emotionally charged and hoping for a different outcome, I’m staying grounded. I’m looking at the facts and assessing the risks. It’s not easy to do, but I truly believe this is what separates the successful and the unsuccessful.