Chapter 5: Greed, Fear and Love – Developing Emotional Intelligence
What we will cover in this chapter
- If we can become wedded to an idea we can form relationships with our investments.
- The vast majority of financial commentary concentrates on emotions such as greed and fear because they fit succinctly into a simplistic characterisation of investor actions. However, love is the only emotion that comes close to describing the relationship we can develop with our investments.
- Love answers the question of why it is so exciting to buy and so difficult to sell.
- The ‘jilted lover’ explains the ambivalence people feel towards a market they have been disappointed by. Having once been rewarded for faithfulness, we are punished for holding ...