KEY TAKEAWAYS 1. Investing based on emotion (greed or fear) ...
KEY TAKEAWAYS
1. Investing based on emotion (greed or fear) is the main reason why so many people are buying at market tops and selling at market bottoms.
2. Underestimating risks associated with investments is one reason why investors sometimes make suboptimal decisions based on emotion.
3. During periods of market volatility and rising interest rates, investors often move funds from riskier stocks and to lower-risk interest rate securities.
4. Dollar-cost averaging and diversification are two approaches that investors can implement to make consistent decisions that are not driven by emotion.
5. Staying the course through short-term volatility is often the key to longer-term success as an investor.
1. Investing based on emotion (greed or fear) is the main reason why so many people are buying at market tops and selling at market bottoms.
2. Underestimating risks associated with investments is one reason why investors sometimes make suboptimal decisions based on emotion.
3. During periods of market volatility and rising interest rates, investors often move funds from riskier stocks and to lower-risk interest rate securities.
4. Dollar-cost averaging and diversification are two approaches that investors can implement to make consistent decisions that are not driven by emotion.
5. Staying the course through short-term volatility is often the key to longer-term success as an investor.
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