Investing without emotion

Checking emotions at the door

Whether you as the individual investor, are into Cryptocurrency, Equities, Real estate, Securities or any other asset as an investment, you must check your emotions at the door. When an
investor makes his/her decisions based of emotion, the likelihood of failure/loss of capital increases
exponentially. Logic based investing is the only way to make it work over an extended period of time.
Bad timing can turn what could have been an incredible investment into a terrible one.

Methodology

1. If you aren’t ahead of the market, react the opposite of how others do. Buy after everyone
   else has just finished selling and Sell when everyone else has just finished buying.
2. Instead of pulling the trigger right away when you see an investment opportunity, take a
   step back from the computer screen and delay the purchase while you think about what you
   are getting into. Fast decisions can be very dangerous
3. Ask peers/family for their opinion on the topic. Ask questions!
4. Try not to focus on immediate price but the long term
5. Pay close attention to the history of the asset
6. Don’t forget how markets work, especially with new technology (crypto). Investors tend to
   get caught up in the excitement of new technology and forget to remember how asset
   classes work
7. Do not become emotionally attached to an investment. Just because you like what the asset
   or project is all about, does not mean you should hold it no matter what. If that investment
   is taking a turn for the worse, sometimes it’s best to cut your losses.
8. Avoid the herd mentality. If you didn’t get in before the herd, say out until the herd clears
   out
9. Always know how much you can afford to lose. When a market shifts from bull to bear, the
   investor needs to know if they can ride out the bear market or if they need to pull capital
   and when

The bottom line

Investing without your emotions making the decisions for you is much more difficult than it
sounds. It takes years of practice and most of the time many mistakes along the way. When the investor
makes a mistake (and your surely will), analyze your mistake and find out what you can do differently in
the future. Most investors never learn to take emotion out of the equation. Diversifying as well as Dollar
cost averaging are great tactics to help avoid bad timing/decisions.