Emotional control is important in all walks of life. It helps maintain the health of our relationships, profession as the health of our finances. A smart investor knows very well what I am talking about, with so many fluctuations in the financial market, it is essential to be rational and not let emotions take over when buying selling your assets.
Emotional intelligence consists of the ability to recognize and evaluate one's own emotions and to deal with them. If you want to succeed in your investments you will need to develop this ability.
Thinking about it, I've prepared this article with a few tips to help you understand once and for all the importance of emotional intelligence in the financial marketplace.
Set goals and set realistic goals
Before you start investing it is very important to study the market, to know which stocks and crypto currencies match your investor profile and what is the best time to buy and sell.
Only with a reality-based view can you make good financial planning, with clear goals and goals that are in line with your financial capacity.
This first step as an investor requires objectivity and emotional detachment to make the right choices. If you let emotions interfere at that moment, the whole future of your investments will be compromised.
Learn how to manage your emotions in market fluctuations
When you become able to manage your emotions, keeping your balance in good and bad times, you will be more likely to ensure the success of your efforts in the financial market.
Managing feelings, impulses and wills as an investor is essential not to take hasty actions and know to wait the right time to make decisions. Financial market fluctuations require emotional management so you can decide on the most appropriate application and even reap the rewards.
Planning is key. The results of investments often arise in the long term, no matter if you are a day trader, swing trader on longer term investors. So it is essential to have the calmness and wait for the perfect moment to make a move. To not be rushed in the face of crises prevent looses. Planning for highs and lows is important and helps us develop emotional intelligence.
Be flexible to deal with unforeseen
Flexibility and self control are essential to deal with unexpected situations, very common in the financial market and especially in the crypto currencies market. It's important not to get desperate when things go wrong, giving up your investments or risking too much unnecessarily.
Avoid making momentum decisions in the heat of the emotions, thinking before you act and reflecting on the options you have, analyzing the risks and probabilities of each of them.
Emotions can not guide financial decisions, so it is so important to develop emotional intelligence, being aware of your reactions and impulses and especially, learning to control them.
We know that this is not an easy task and that many investors even leave the financial market because they do not support the fluctuations and the emotional impact they cause. However, to manage the risks of your investments and achieve your goals in this market, you need to develop emotional intelligence already!
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Editor: Michelle Mafra (MamãeCrypto)
Psychologist: Adriana Prosdocimi