22 Feb 2008 06:32:34 | Andrew Clacy
*Do you have trouble pulling the trigger and frequently miss big
trades or investments that you are sure would be winners?
*Do you seem to have a ceiling in your investing/trading? For
example, do you make a specific amount of money only to find
that you give it all back?
*Do you invest for excitement? Do you find that you take
high-risk trades and can't help yourself? *Did you have a big
loss at some point in your investing/trading history and then
find that the loss still affects what you do in the market today?
When people are over stressed, their capability of doing things
well shrinks dramatically. It's directly related to what happens
to the brain.
*During stress, the hormone adrenaline is released into the
bloodstream. This has the effect of diverting blood from the
brain to the major muscles of the body. It means that you can
run faster, but it also means you are much less effective at
processing information. In fact, the conscious mind, which
normally has the capacity to process seven chunks of
information, shrinks down to the point of being able to process
only one or two chunks of information.
*Think what that means to most investors and traders. They get
stressed-- either by the market or by something going on in
their lives--and can no longer effectively function.
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