Why are some people unsatisfied with their investing experience? | Sponsored by Spire Advisors

Oftentimes, we have heard reports of people getting excited about buying stocks when the market is high – and then selling them quickly when the market it is low, out of fear.

Some theorize that this instinctive behaviour is deeply rooted in the fact that it has kept us alive as a species. For example, we generally tend to run towards things that give us security or pleasure – and then run as fast as we can away from things that cause us stress or pain.

While it acts well for survival instincts on a primal level, this behaviour does not yield positive results when it comes to investing.

Rest assured, it is normal enough to feel excited when the markets are high, and quite understandable to feel scared when the markets dip low. Combined with our primitive desire to find safety in numbers (for example, buying when everyone else is buying, or selling when everyone else is selling), our instinct to do the *wrong* thing in the stock market can be very strong. But as you can imagine, when we repeatedly buy high and sell low, we can lose a significant amount of money – which is why some people are unsatisfied with their investing experience.

In the world of investing, it is critical that you do not act on your emotions. For many, this can mean creating a strict plan and sticking to it – and for others, this can mean hiring an advisor who has the experience/knowledge required to refrain from reacting to possible feelings of excitement, or fear.

If you have any questions about investing, please reach out to one of our advisors, today.

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