Make your portfolio an emotion-free zone
Abstract: Emotions can get in the way of sound financial decisions. It’s human nature to become greedy during good times and to panic during bad times. Since it’s not possible to turn off emotions, it’s important to try to understand how they can undermine investment decision making. This will help investors focus on setting limits that will enable them to invest successfully. This article offers several strategies toward that goal. A sidebar notes a study offering a real-world example of how emotions may get in the way of sound decision making.