The emotional rollercoaster of investing

6th April 2012

One of the biggest mistakes still made by investors today is to sell when the stock market has fallen and to invest when the market has risen. People rarely do this with any other purchase, however large or small. We wait for new year sales to buy clothes and furniture, offers on houses are usually under the sale price listed.

But we seem to like paying over the odds for our investments or selling them very cheaply and our emotions play a big part in this. When markets have been rising for some time we believe that they will continue to do so. When they fall, we panic.

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