Markets

Check Your Emotions at the Door

Getting emotional about your money is natural, and there's nothing wrong in enjoying the highs and feeling the lows when investing.

In this clip from Rule Breaker Investing , Motley Fool co-founder David Gardner explains the differences in the types of emotions that investors allow to rule their decisions when it comes to the stock market. He also explains which emotions can be beneficial with investing, and the importance of checking at the door the ones that'll hurt you.

A transcript follows the video.

A secret billion-dollar stock opportunity

The world's biggest tech company forgot to show you something, but a few Wall Street analysts and the Fool didn't miss a beat: There's a small company that's powering their brand-new gadgets and the coming revolution in technology. And we think its stock price has nearly unlimited room to run for early in-the-know investors! To be one of them, just click here .

This podcast was recorded on Oct. 28, 2015.

David Gardner: No. 5: Check your emotions at the door. I go back and forth a lot on emotion in investing. This principle, from our article I like and support, that's why I'm talking about it here, checking your emotions at the door, it doesn't mean that emotion is bad in investing. I want to be clear that I think things like being passionate about the companies you're investing in, being excited if a stock doubles, or if you get your first Spiffy-Pop, these are wonderful emotions, and I am all about positivity and bringing emotion that is positive to as many of our endeavors as possible. And most of the most psychologically healthy, in my experience, and productive people in our world are positive people. And that's an emotion.

But the type of emotion we're talking about here that you should check at the door are reactive emotions. Usually, they come about as negative reactions to things that have just happened and cause us to make poor decisions looking backwards at what just happened. We've talked about this on this podcast. I know I'm going to do it again in the future. But don't invest with a rearview mirror. So much of the world is looking backwards, as Jack Bogle reminds us with his "rowboat syndrome" -- too many of us, we're paddling forward, but we're looking backwards, and when something goes wrong, we tend to overreact. And we start to do things like, "You know what? I shouldn't be investing at all," or these kinds of things that I've covered.

So check your emotions at the door. Really important. But also remember that there are some great emotions that you should be bringing to bear with your investing.

The article Check Your Emotions at the Door originally appeared on Fool.com.

Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .

Copyright © 1995 - 2016 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Other Topics

Stocks

Latest Markets Videos

The Motley Fool

Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Learn More