The Way to Avoid Costly Emotional Investment Decisions

There’s a good reason why the average investor or, heck, even the average fund manager or broker almost never beats the market.

It’s the human element.

You see, when we see a stock soar, we’re compelled to come up with a reason why. We say: “I knew Apple stock was going to the moon.” Or we chase past performance, believing it’s an indicator of future success.

But let’s be honest. More often than not, we’re completely wrong. Then we base future investment decisions on emotion and don’t get the results we’re after. It’s human nature. Just about everyone I know has been guilty of this. And I know some pretty smart folks.

For instance, a lot of you are probably fans of momentum investing. The truth is, I am, too. You always want to capitalize on a trend, and trends are made up of people.

But while following the crowd CAN result in great momentum plays… you don’t want to do so blindly.

The crowd-seeking I’m talking about – follow the herd, think later – is responsible for a lot of failed investments. It means you won’t pick up on a shift in the trend. Thus, you’ll get your timing all wrong. You’ll often end up buying near the highs and selling near the lows.

With Crowd-Seeking Bias, even the best investing ideas can become a losing proposition.

The flip side is to be a contrarian. In other words, to buy the dip and sell the highs.

As we’ve established, though, contrarianism goes against our instincts. That’s why everyone isn’t Warren Buffett. But you can get his level of returns (or better) by checking your emotions at the door – and sticking with a pattern that works.

There’s an easy way to resist our tendency for crowd-seeking, and it’s to look for buys when a stock has become a bargain. And I don’t just mean “cheap.” I mean a good value.

In other words, look for a company that’s still growing like crazy – in terms of sales, operating margins, and especially earnings. Whenever its stock experiences a sell-off, then that’s a great opportunity.

And those fundamental factors are exactly what I’ve designed my system – called Project Mastermind – to detect.

But, again, you only want the highest-quality companies.

My Project Mastermind system culls massive amounts of data and, using proprietary techniques I’ll describe more during my upcoming event (reserve your spot here), finds what can actually help folks achieve the best retirement possible, in the shortest amount of time.

All without relying on fallible human emotions.

And tomorrow, Wednesday, October 20, at 4 p.m. ET, I will present Project Mastermind and show you exactly how I use modern technology to identify stocks that are ready to soar. I’ll also share the stock I’ve rated No. 1 based on insights from Project Mastermind – ticker symbol and all…

I encourage you to set some time aside and join me. What I reveal is going to be a real investing game changer. You can click here to sign up now to reserve your spot.


Louis Navellier

The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:

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