15 Biggest Emotional Mistakes Of Shareholders In Stock Markets

Biggest Emotional Mistakes Of Shareholders In Stock Markets. Stock trader feeling upset after doing emotional mistakes in share trading.

Emotions can greatly impact individual’s decision making process. Its effects can be seen throughout stock markets. If you know about these biggest emotional mistakes of shareholders in stock markets, you can boost your performance.

According to a 2015 study conducted by researchers at University of California, emotional excitement not only creates stock market bubble but research shows that frenzy actually causes them to grow.

Emotions are equally important in driving the share prices. They can move stock price either to astronomical heights or to unbelievable downside levels. It can even force you to cut right & profitable positions in share markets.

Sometimes, they can influence you to stand on sidelines during unique & cost effective opportunity. Emotions can have different effects on different individuals at different times.

They can also affect risk taking capacity of an individual in securities. Here are 15 biggest emotional factors affecting shareholder’s decision in share markets:

[You can also watch an exciting video on this post from GetUpWise channel on YouTube.]youtube-subscribe

(1) Greediness

It is one of the most costly & biggest emotional mistakes of shareholders in stock markets. Every person wants to grow his/her money with certain risk.

Share trading is a good means to increase your money. But, greediness to increase your wealth as much as possible in short time can adversely affect your decisions.

Once you start building unrealistic targets for profits, your chances to lose money increases. Sometimes, investor’s greed can lead to securities being grossly overpriced. It may even result in creating a bubble that can burst anytime. This get-rich-quick mentality makes it hard for equities to maintain their gains.

Furthermore, it can also derail you from strict investment plans over long-term. It is necessary to follow basic fundamentals of investing in share markets.

Image Source: Shutterstock

Recommended Posts

About Editing Staff
At GetUpWise, we are a team of professional writers from different areas of subjects. We are conducting thorough research on each & every topic from highly reputed sources before writing any piece of article. Once research is done, we try our best efforts to provide informative piece of articles in an easy to understand manner. It is something that is extremely essential to meet our goal while reaching & offcourse building a strong online community. We do update our articles from time to time in order to provide the most latest information quickly. Thus, our articles can be used as a "way to gain smartness".

Leave a comment

Your email address will not be published.


This site uses Akismet to reduce spam. Learn how your comment data is processed.

Get Instant Access To GetUpWise Posts

Subscribe Us


Please do verify your email address by clicking a link sent to your email.

More in Stocks & Mutual Funds
Common Mistakes In Stock Market Every New Investor Makes.
10 Common Mistakes In Stock Market Every New Investor Makes

Stock investment requires unique strategies at different time. But, you need to avoid common mistakes in stock market every new...