mauldineconomics.com / BY JARED DILLIAN / JUNE 8, 2017
I just got back from New York, and I have to say, it was a bit of an emotional trip. Without getting into too much detail, some of my meetings dredged up old feelings that I’ve been carrying around for the last few days.
First, I want to express annoyance about these feelings. They’re not productive; they don’t help me do my job. They’re a distraction. I wish I didn’t have them.
There are a lot of times in my life where I wish I was just a computer and didn’t have feelings. I’d probably be a much better trader.
And that’s what this piece is about. We’re all human beings, trading and investing, trying to make money, but these things called emotions get in the way.
Now, most trading experts will tell you to get rid of your emotions altogether, to get as close to being a computer as possible.
Let’s be realistic—you can’t get rid of your emotions. The best you can do is to try to use them for your advantage.
I am probably more emotional than most people. I have a tendency to get really happy or really angry or really sad (more here). I got a stomach flu a few months ago and spent a day at home on the couch, watching 6 hours of My Cat From Hell reruns (and crying).
I have spent most of the last ten years trying to be as dispassionate as possible—but emotions still sneak out sometimes.
So if I can control my emotions investing, you can, too. One of the first things to work on is your response to making or losing money.