Human Egos

One unforgivable mistake that a lot of stock buyers make consists in limiting their gains and as a counterpart, allows the loss to increase. There are many rules that are continuously broken when people buy stock and not only in the case of amateurs but also in the case of professionals. Everybody already knows what it takes to win this game but something inside of us does not allow us to do so. What is pushing us to violate these rules and place our capital at great risk? Our egos. Let us see it from our ego point of view, and how it makes us react in stock exchange transactions. As soon as we hear some news on the radio or data, we gather an opinion and we immediately guess its consequences. If we were wise and prudent, we would wait for all the market to confirm our opinion, however what we frequently do is make the decision to buy immediately, without considering what the market indicates, and then wait for the behavior of the price in time will prove us right. When we do not get it right is when the problems start. Our ego starts to sabotage our ability to make the right decisions. In an almost tangible way will be like having another person inside of us that has his own personality that continuously whispers fantasies into our ears. This little person will look for the reasons for us to maintain our losing positions. The rule says that we should pull out as soon as we can from a stock that is descending but our ego will interfere between us and the rules in order to keep its self esteem and not recognize its mistake. Instead of allowing us to swallow our pride for having made a mistake, it will not allow us to correct the mistake that was made before the losses are too great.